CHICAGO -- Alleghany Asset Management and its subsidiary, Chicago Trust Co., formed two new asset management companies last month.
Chicago Capital Management was created to focus Chicago Trust's institutional asset management business into a single unit, said Stuart Bilton, president of Chicago Trust and Alleghany Asset Management, both based in Chicago. Chicago Capital Management is registered with the Securities and Exchange Commission, instead of with the state of Illinois, which should help dispel the impression that the company is a bank, rather than a traditional, institutional investment manager, Mr. Bilton said.
Chicago Trust moved $7 billion in existing assets to Chicago Capital Management. Robert M. Boyles was named president of the new firm. He remains chief operating officer of Alleghany Asset Management, parent of Chicago Trust.
Carla V. Straeten, former head of marketing at Chicago Trust, is executive vice president, managing director, global marketing and client service for the institutional business unit.
Chicago Capital Management's separate account investment strategies include large-cap growth stocks, headed by Bernard F. Myszkowski; small-cap value equities, headed by Patricia A. Falkowski; and domestic fixed income, led by Fred Engimann.
Separately, Alleghany Asset Management formed King Street Capital Partners LLC, Alexandria, Va., its first foray into large-cap value management.
"We decided to build it, rather than buy a large-cap value manager," Mr. Bilton said. Alleghany had been strategizing for some time about how to complete coverage of the full spectrum of investment styles.
Alleghany hired Ronald A. Marsilia, chief executive officer, and Philip D. Tasho, chief investment officer, from Riggs Investment Management Co., Washington, where Mr. Marsilia has been president and CO and Mr. Tasho was chief executive officer and chief investment officer.
Alleghany Asset Management has a total of five investment subsidiaries, managing $40 billion.