It declined to comment on its investment strategies but it is known to invest globally and across many asset classes. Mr. The conservative bets, the nondescript office, the investment firms generic-sounding name; they were all carefully designed to shield Bill Gates and Melinda French Gates from criticism and produce steady, if seemingly unimpressive, returns. The Times reported that the handling of the situation had put Bill and Melinda Gates at odds. This has meant that more money has been created to go into the foundations mission to fight disease and improve education in the developing world. Email. French Gates hired a law firm to investigate the woman's claims and the culture at Cascade, and Larson was placed on leave. The family office market can take many forms, from a single former executive assistant helping a patriarch/matriarch, to a 40-person professional investment organisation that also deals with personal affairs. Language links are at the top of the page across from the title. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. The head hunter had heard of Larson from a few investors in Tacoma, Washington. He is responsible for Mr. Gates non-Microsoft investments as well as the investment assets of the Bill & Melinda Gates Foundation Trust. An investment firm paid at least seven settlements to people who are alleged to have witnessed workplace misconduct by Bill Gates' money manager Michael Larson, The New York Times reported Wednesday. Larson called the investment shop Cascade Investment because the generic name would allow him to operate in the market without drawing attention. Cascade Investment paid settlements to at least seven people who . This allows them to outsource functions previously done in-house. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. Another reason bonds are attractive to Larson is that as new money streams in, scaling up in the fixed-income markets is much easier than in stocks. OEM diesel and natural gas engine manufacturer. Michael Larson also manages the funds for the Bill Gates Foundation. He was also accepted at the University of Washington and Claremont McKenna College. Sophie Alexander , Anders Melin and Tom Maloney 22 June, 2021 09:09 am IST powered by Digital Info. 5 free lookups per month. French Gates rarely attended meetings in Cascades early days aside from the annual in-person gathering, and when she did she tended to be a passive participant, according to one of the people familiar with the firm. Because Patty Stonesifer and her crew have a fairly constant need for cash, Larson keeps this portfolio mostly in short-maturity U.S. government and corporate fixed-income securities. When people find out that Cascade has made an investment in something, thats not Bill Gates, he said in the Fortune interview. Many of them are business-owning families or those so-called financial families, who have sold operating businesses. Across the world, Tillotson believes there are about 79,000 very rich individuals (those with personal wealth greater than $50m) who control roughly $19tn in assets. Stay up to date with what you want to know. Cascade also owns around 270,000 acres of land, enough to make it the single biggest owner of U.S. farmland, according to the Land Report. Please speak to a licensed financial professional before making any investment decisions. Cascade doesnt disclose its overall investment performance, but financial reports from the foundation offer clues. India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. Cascade has around 100 employees, who, when traveling on business, must stay at a low-cost hotel, not the Four Seasons, despite the fact that Cascade owns a large chunk of the hotel chain. Cascade does not publicly disclose its performance results but it has been reported that because of Larsons relatively conservative strategy, Cascades losses in the 2008 financial crisis were smaller than the industry average for the full year. They talked about AlbuquerqueMicrosofts hometown in the early daysabout risk management, and about investing, of course. Cascade's most recent Form 13F filed with the SEC showed assets of $2.1 billion. About 5% of Gates portfolio is farmed out to managers like McNamees Integral Capital Partners and Blue Ridge Capital, a New York hedge fund run by John Griffin, former right-hand man of Julian Robertson at Tiger Management. Additionally, claims have come forth of sexist and racist comments that Larson made. After a few years, Larson moved to Boston to work for Putnam Investments managing bond funds. In addition, he is Chairman of the Board of Trustees for Western Asset/Claymore Inflation-Linked Securities & Income Fund and Western Asset/Claymore Inflation-Linked Opportunities & Income Fund. At the time, the portfolios both for the foundation and for the Gateses personal money mostly consisted of bonds, with some bets on private equity, commodities, Florida real estate and British hotels. Larson's net worth is projected to be in the millions, though it's unclear where the number lies. Michael Larson has served as Bill Gates' money manager for decades. ), because Early gave him the thumbs-up. In 1994, Larson and his wife moved to Seattle. Michael Larson, the son of an industrial engineer, grew up in North Dakota and then in Albuquerque. Other directorships held during the past five years Director of AutoNation, Inc., Republic Services, Inc., Grupo Televisa, S.A.B. I am writing on behalf of Michael Larson, who is the manager of Cascade Investment, L.L.C. Amid controversy, Bill Gates' money manager Michael Larson could be safeguarding a hefty net worth. and Fomento Mexicano Economico, S.A.B. [2] When Larson started at Cascade, informally known as BGI (Bill Gates Investments), he was the only employee. A spokesperson for Cascade said there have been less than five complaints against Larson out of 380 people he's managed. Source: getty. Despite his high-profile job, he works hard and successfully to stay out of the public eye Cascade declined to speak for the purposes of this article. The manager had broad leeway from Gates on investment decisions, they both have said. The letter requested help from the Gateses in addressing the situation with Larson and threatened legal action if they didn't. In a March Ask me anything event on Reddit, a user asked about his purchases of farmland. That track record is broadly representative of Cascades overall returns, another person said. It has also invested in Diageo, the distiller, and JJB Sports, the retailer. Michael Larson works at Cascade Asset Management, which is a Custom Software & IT Services company with an estimated 90 employees. The BMGI/Michael Larson Asset Management Fellowship Program is designed to support juniors and seniors at Claremont McKenna College who are interested in studies and careers involving asset management and investment management. Qualifications With more than 40 years of portfolio management experience, Mr. Larson has deep investment expertise and broad understanding of the capital markets, business cycles and capital efficiency and allocation practices. Read More . Bill Gates decided to hire Michael Larson after the Journal reported in 1993 that the entrepreneurs money manager at the time had previously been convicted of bank fraud. He favors cable stocks such as TCI and Liberty Media, as well as Cox Communications and Barry Dillers USA Networks. Its five largest publicly disclosed equity holdings are: Canadian National Railway; Republic Services, the waste removal company; Ecolab, the disinfectant maker; Femsa, the drinks group; and Deere, the maker of agricultural machinery. Larson also has a significant amount of money in short positionsactually more than usual right nowwhich reflects his view that many stocks are fully, if not overly, valued. Cascade paid settlements to at least seven people who witnessed or were familiar with Larson's behavior to keep quiet about their time at the firm, The Times reported. Sources also told The Journal that Gates and Larson mostly had a professional relationship and that they rarely interacted socially. When it comes to managing that money, they want to apply the best possible investment advice. Second, there are more family offices as a result of the increase in wealth globally and greater information is available about best practice and resources. Larson was hired by the Microsoft Corp. billionaire in the mid-1990s to oversee that wealth. In August, it increased its stake in Strategic Hotels and Resorts to 9.8 per cent. The holdings havent uniformly jived with the Gateses charitable endeavors or priorities, which include global health and, more recently, climate change. Catherine Tillotson, managing partner of Scorpio Partnership, the consultancy, says: A tour around Londons elite wealth management boutiques reveals the growing popularity of the term private investment office. I thought it was the old FBI trick, chuckles Larson, you know, ask for 13 and randomly pick three. "Years ago, earlier in my career, I used harsh language that I would not use today," Larson said in a statement to The Times. In a Fortune story from two decades ago, Larson explained that much of his strategy boiled down to countering the swings of Microsoft stock. Copyright 2022 Printline Media Pvt. Find unique places to stay with local hosts in 191 countries. Michael Larson, 61, the man in charge at Gates's money-management firm, Cascade Investment, is reported to have judged women on their attractiveness and made sexually and racially. Bill Gates money manager: What to know about Michael Larson, Bennett inks new deal with Schaumburg Boomers, Bill Gates Says He's Fighting Climate Change. So whats in the portfolios? Get Verified Emails for 20 Cascade Investment Employees. Copyright 2023 Market Realist. Bill Gates' money manager Michael Larson was accused of making racist, sexist remarks to employees, The New York Times reported. Some current and former employees say he can be brusque and controlling, even deciding the seating chart for the investment firms annual holiday party. After two years, he struck out on his own. Family business consulting, private company services and even strategic philanthropy advice have joined the lexicon of wealth management for the extremely rich, she says. At Ecolab Inc., we promise to treat your data with respect and will not share your information with any third party. The two foundations merged to form the Bill & Melinda Gates Foundation during 2000. I needed to have complete faith in the person I picked since I didnt ever want to have to look over their shoulder.. Larson attended Valley High School in Albuquerque. I think he had just fired some people, and I thought he would be difficult to work for. Under Larson, Cascade has focused some of its attention on UK-listed stocks. Michael Larson runs a tight ship with his employees as well. Two decades ago, Larson put it more bluntly. Belong anywhere with Airbnb. [1] On Monday, a spokesman said that Bill and Melinda Gates Investments the 100-person strong team led by Larson thats overseen their personal fortune and the endowment of their namesake foundation changed its name to Cascade Asset Management Co. So where once the term family office was synonymous with the isolated management of an individual familys wealth, today it perhaps best describes a growing body of professional knowledge and an industry in its own right that includes both specialist and general practitioners.. 30 Apr 2023 20:37:03 Right now his portfolio actually looks somewhat like a big old bond fund. In fact, a recent snapshot of Gates personal portfolio looks like this: Larson has 70%, or $3.5 billion, invested in short-term governments and corporates, with a small weighting in foreign bonds. The divorce and recent revelations about Cascades workplace culture, reported by the New York Times, raise questions about whats next for Larson and the fortune he oversees. The shop was partially owned by Rally Capital, a firm that Cascade had invested in. Unflattering details spilled out, including a report that Larson allegedly harassed & bullied some employees. Cascades assets have periodically been boosted by proceeds from the sales of Gatess Microsoft stock. [5], Larson reportedly directs Cascade's investments through Bill and Melinda Gates Investments, a firm that also manages the portfolios of the Bill and Melinda Gates Foundation and other connected entities. Market Realist is a registered trademark. The newspaper. Once loosely described as family offices or multi-family offices, this linguistic shift aims to put a finer point on their capabilities as independent advisers on family wealth.. He is the chief investment officer for Bill and Melinda Gates Investments (BMGI), and as such is in charge of managing Bills personal wealth through Cascade Investment, as well as handling the Bill & Melinda Gates Foundation Trust endowment. However, the severity of these claims and the consideration that many may not have come forward are food for thought. Previously, Mr. Larson was at Harris Investment Management, Putnam Management Company and ARCO. The arrangement is simple: Mr. Larson makes money, and Mr. Gates gives it away. Wall Street Journal. He assumed the role in 1994. Bill Gates' money manager Michael Larson is accused of making racist and sexist comments. He was raised in Albuquerque, New Mexico and spent his summers in North Dakota. One remarkable feature of the portfolio is how little it changes. Though it may have a smattering of stocks at any given time, it too is almost entirely in bondsabout 75% short-term U.S. governments and corporates. Cascade's sole. The record illustrates the priorities of the uppermost strata of the ultrarich, where investment horizons span generations and riskier bets often dont outweigh the value of a good reputation. Offers may be subject to change without notice. Sources told The Times that the woman reached a settlement in 2018, signing a nondisclosure agreement in exchange for a payment. According to the report, Larson would judge female coworkers based on their attractiveness to other male employees and showed pictures of nude women to coworkers and compare the photos to a female human resources executive. ", "See how @DiageoGB scores on #water stewardship in face of #climatechange in new @Ceresnews analysis", "Bill Gates is $9.5 billion richer than he was a year ago, worth over $100 billion, but not just from Microsoft", "Cascade Investment Portfolio Holdings", "The Bill Gates-backed company that's reinventing meat", "Sears gets more time to repay lenders, including funds tied to CEO Edward Lampert and Bill Gates", "Bill Gates' Cascade Investment, GIC buy stakes in StorageMart", "GIP teams up with Blackstone and Cascade to buy Signature Aviation", https://en.wikipedia.org/w/index.php?title=Cascade_Investment&oldid=1132153932, Investment companies of the United States, Conglomerate companies of the United States, Financial services companies established in 1995, 1995 establishments in Washington (state), Privately held companies based in Washington (state), United States financial services company stubs, Creative Commons Attribution-ShareAlike License 3.0. Although an actual statement isn't released, it's believed that Larson manages well over $80 billion year to date.[when? He decided to attend Claremont McKenna and graduated in three years with a degree in economics. "There's a clear process for employees, contractors and partners to share concerns either anonymously or by name, and any issue raised over the company's history has been taken seriously and resolved appropriately," the spokesperson continued. [6] A New York Times report on Sunday said Larson had been accused of sexual harassment in 2017. You can help Wikipedia by expanding it. You must click the activation link in order to complete your subscription. A significant stake in the Four Seasons luxury-hotel chain. Based in Kirkland, Washington, Cascade shies away from media attention. Michael Larson is one of the most powerful men in US wealth management you have never heard of. Being the investment chief for one of the worlds biggest family fortunes might seem like an enviable job for an investor mulling creative bets. Cascade Investment paid settlements to at least seven people who witnessed Larson's behavior, The Times reported. Cascade held investments in oil and gas companies until 2019, Gates said in his recent book about climate change. He is Chairman of the Board of Directors at Western Asset and has been a member of the Board of Directors at Teledesic, Pan American Silver, Ecolab, Hamilton Lane, FoodTrader.com, Republic Services and AutoNation. That has shifted. Michael Larson doesnt restrict himself to stocks; he looks at bonds, currencies, commodities, land, and direct investments in companies. 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