Small managers with big ideas can capitalize on opportunity. The light bulb hanging over the head of Steve Smith, principal at Smith Asset Management Group LP, Dallas, flickered when he heard this spring that old friend Greg Golden was looking to leave TradeStreet Investment Associates Inc.
Mr. Golden and his teammate Jeff Moser were managing about $12 billion in quantitative strategies, mostly for institutions, for Charlotte, N.C.-based TradeStreet.
Mr. Smith scooped up Messrs. Golden and Moser and provided the capital for them to launch an enhanced indexing business. Rather than slide them into Smith Asset, Golden Capital Management was created. The managers will remain in Charlotte, where Smith Asset has a satellite office, and operate as a division of Smith.
"We wanted to emphasize the reputation Greg has, which is positive in the consulting network," Mr. Smith said. "And this way, he is not just an employee. He's running the division.
"And we can capitalize on the value of the name Golden. In the money business, you couldn't pick a better one."
