Vaughan, Nelson sold
New England Investment Cos. is acquiring Vaughan, Nelson, Scarborough & McConnell, a Houston core manager with $1.7 billion in equity, fixed-income and balanced portfolios. Terms weren't disclosed. The acquisition will bring New England's total assets to $85 billion. Vaughan, Nelson will continue to operate independently under its own name and management; it is New England's first affiliate in the Southwest.
Trio leaves Sarofim
Three investment executives at Fayez Sarofim & Co. have joined with Prometheus Advisors' executives to form Cypress Asset Management, a new Houston-based large-cap growth equity and balanced manager.
Prometheus folded its $80 million under management into Cypress.
William L. Garwood Jr. and Frank P. Lee, both vice presidents and portfolio managers at Sarofim, and David E. Jorden, senior principal, join Prometheus executives Ron Lerner and Dan Japhet at the new firm.
The three former Sarofim principals have not been replaced and their duties have been reassigned to other staff members, a spokeswoman said.
Cashman team opens shop
The equity department of defunct Cashman Farrell & Associates has opened up an equity firm with $330 million in active domestic equities. The new firm, Cashman and Associates, will use the same large-cap, bottom-up value style Cashman Farrell used. Daniel V. Cashman is CIO of the new venture; Donald J. McBride is the new firm's client contact; both were partners at the old firm.
East Hartford hires 2
Moving to multiple managers, the $110 million Town of East Hartford (Conn.) Retirement Fund hired two international equity managers, said Barbara J. Avard, director-finance. Brandes Investment Partners and Simms Capital Management each will be assigned $3.5 million.
Funding came from Aeltus, which ran the international equities and had been the fund's sole manager; it will continue to run the rest of the fund's $103 million, all in domestic investments.
Dean Witter Reynolds assisted in the searches.
Morales quits Houston Fire
Jennifer Morales, executive director of the $1 billion Houston Firemen's Relief and Retirement Fund, is resigning to pursue an advanced degree. Ms. Morales, who has been executive director since 1992, will continue working with the system on a consulting basis for the next six months. Pam Monroe, deputy director, will serve as acting executive director until a replacement is named. Ms. Monroe said the board is evaluating whether to form a search committee or to promote from within the system. No timetable has been established for naming a replacement.
Japanese sales tracked
Opportunity funds backed primarily by U.S. pension funds bought 60% of the U.S. properties sold by Japanese institutions last year, according to the E&Y Kenneth Leventhal Real Estate Group's annual report on Japanese Disinvestment of U.S. Real Estate.
Official estimates of Japan's soured real estate loans total $400 billion, which is more than four times the $90 billion in troubled real estate assets sold by the Resolution Trust Corp. Japanese owners and lenders are expected to sell between $40 billion and $50 billion of U.S. property in the next five years, according to E&Y Kenneth Leventhal.
TFA drops suit
Trust Fund Advisors has withdrawn its lawsuit against Sierra Capital Management, a firm started by three former TFA staffers.
TFA sued Sierra's principals to stop them from soliciting TFA clients, but TFA President Michael Steed said the two sides reached a settlement. Neither he nor Sierra President Bruce Dereschuk would reveal terms of the settlement.
TFA already has replaced the executives and is searching for an additional West Coast-based marketer who will be located in northern California.