Perkins CEO/CIO resigns; positions filled internally

Thomas Perkins, one of the founders of Perkins Investment Management, assumed the role of CEO Thursday following the “unexpected” resignation of Jeff Kautz, CEO and chief investment officer, said a letter from the firm to clients and obtained by Pensions & Investments.

In addition, Greg Kolb will assume the CIO role for the firm, which is owned by Janus Capital Group, according to the Wednesday letter. Mr. Kolb is a co-portfolio manager on Perkins's global value and international value equity strategies.

Mr. Kautz is scheduled to leave the firm April 5.

In an e-mailed comment to P&I, Mr. Kautz said he was with Perkins for 18 years. “I felt it was time for a change,” he said without going into details. He said his departure was voluntary and he has a one-year non-compete agreement that he wanted to set into motion. After that, he said he is considering several employment options including starting his own company.

Janus officials say they were taken by surprise by Mr. Kautz' planned departure.

“Jeff was recently named CEO, so we were surprised by his announcement,” reads the letter signed by Janus CEO Richard Weil and Mr. Perkins. “We are taking this opportunity to make changes to Perkins team, which we believe are positive and will ensure we have the right people in the right positions to deliver improved investment results for our clients.”

Mr. Kautz had been CIO at the firm for seven years and added the CEO title in January after CEO Peter Thompson left the firm.

Both Messrs. Thompson and Kautz's departures have come as the firm has seen performance challenges, particularly at Perkins' largest strategy, the $7 billion midcap value strategy. Mr. Kautz had been a portfolio manager of that strategy. Perkins had $12.1 billion in assets under management as of Dec. 31.

The client letter says Justin Tugman, co-portfolio manager of Perkins' small-cap value strategy, will also assume the role of portfolio manager on the midcap strategy. In addition, it says Mr. Perkins will continue in his role as co-portfolio manager of the midcap strategy.

Janus spokeswoman Erin Freeman said in a statement that Janus officials believe the personnel changes will give “the best opportunity” moving forward for improved results in Perkins' strategies.

The midcap strategy underperformed the Russell Midcap Value index for the one-, three-, five- and 10-year periods ended Dec. 31.