JERSEY CITY, N.J. — Edward Tokar, CEO of Allied Capital Management LLC, never liked to be locked into investing in a single strategy.
"Investment managers shouldn't be limited in their portfolio selections just because a stock's market cap is $3 billion when they're looking for one with a market cap of $5 billion, or because it's $5 billion when they're looking for a market cap of $10 billion. That's like saying they will only invest in stocks whose names begin with the letters A through F. There is no rationale or logic to investing that way," Mr. Tokar said in a recent interview. Allied Capital manages the $18 billion pension plans of Honeywell International Inc., Morristown, N.J.
Frustrated by that limited approach, and wanting to do something about it, Mr. Tokar spoke with Robert Morris, partner at Lord, Abbett & Co. LLC, Jersey City, N.J., in the late '90s. Abbett has been one of Honeywell's money managers since 1977. The talks spurred Abbett to launch the Multi Cap Value Equity Fund in 1999. As of Oct. 31, it had grown to $1.35 billion, with $600 million from institutional clients and $750 million from retail clients.
Honeywell made an initial allocation to the strategy, and added to it a few years later. Mr. Tokar declined to say how much Honeywell has in the strategy, but noted he has been very pleased with the results.