Two active U.S. value equity teams, each focusing on different capitalization ranges, will combine by the end of the quarter to offer more complete coverage.
The equity operations of CIC/HCM Asset Management Inc., Honolulu, and Valenzuela Capital Partners LLC, New York, will merge in Los Angeles, where each company has an office, said Michael K. Hirai, principal and CIC/HCM's chief investment officer. CIC/HCM manages about $250 million in large-cap U.S. value equities, Mr. Hirai said. Valenzuela Capital managed about $800 million as of Dec. 31, mainly in midcap U.S. value equities, according to data provided for Pensions & Investments' annual directory of money managers.
What will happen regarding the equity operations of each firm is not clear; Thomas Valenzuela, founder and CIO of Valenzuela, did not return calls.
CIC/HCM will continue to manage about $300 million in active U.S. bonds under its own name from Hawaii. Mr. Hirai said the idea of splitting the firm into its asset-class components first arose when principals there sought to merge the firm's bond operations with those of another fixed-income manager. When that deal fell through, the equity operations instead became the object of what Mr. Hirai described as a "spin-off." He did not disclose terms.
Joining Valenzuela will be Les Waite and Diana Calhoun, who recently joined the Los Angeles office of CIC/HCM as equity portfolio managers, both new positions. They came from Mr. Waite's eponymous Los Angeles firm, which is now closed, said Mr. Hirai.
