Emmet Murphy and four other portfolio managers left Luther King Capital Management. Consultants and clients are keeping a close eye on the firm as a result of the departures and less than stellar investment performance.
Mr. Murphy began his own hedge fund firm, Paradigm Capital Management. Others who left are David D. May, vice president and portfolio manager, who joined Ardsley Partners as a partner in January; John Patrick Clegg, vice president and portfolio manager; Robert Alpert, portfolio manager; and Bob Crates, who ran an internal venture capital fund for the firm.
According to PIPER, the firm's large-cap value portfolio was up 27.6% for the year ended Dec. 31, compared with the S&P 500's 37.6% rise. In the year ended Dec. 31, 1994, the portfolio was down 1.2%, while the S&P 500 was up 1.3%.