BML Funds, a fund management firm with $1 billion in assets under management, is set to be wound up following the departure of its chief investment officer, Ted Alexander, who is moving to Platinum Asset Management. This transition was officially announced on February 25, marking Alexander’s new role as the portfolio manager of Platinum International Fund.

The move entails Alexander assuming the portfolio manager responsibilities from Andrew Clifford and Clay Smolinski, who are relinquishing their management and co-chief investment officer roles. Platinum’s CEO, Jeff Peters, confirmed the recruitment of the new manager during a results webinar, emphasizing Alexander’s full commitment to Platinum as BML Funds undergo winding down procedures.

In addition to Ted Alexander, BML’s portfolio manager Ying Luo will also be making the move to Platinum. BML Funds is recognized as an independent boutique firm specializing in managing international asset portfolios for clients. Alexander confirmed that the assets under management at BML would be returned to investors due to the firm’s closure following his decision to join Platinum.

Furthermore, Alexander mentioned that the legal obligations related to Brite Advisors, a global advisory group with frozen assets, would cease once the legal case concludes in the first half of 2025. The decision to wind down BML Funds was made in conjunction with Alexander’s move to Platinum, ensuring a smooth transition for investors.

Despite Alexander’s reputable track record from previous roles at firms like Magellan and Orca Funds, research firm Morningstar expressed concerns about his lower name recognition compared to his predecessors at Platinum. Morningstar’s equity analyst, Shaun Ler, highlighted the importance for Alexander to demonstrate consistent outperformance and rebuild investor confidence, acknowledging the challenges he may face in the near term.

In conclusion, the shift of Ted Alexander to Platinum Asset Management marks a significant development in the fund management industry, signaling changes in leadership and strategy for both BML Funds and Platinum International Fund. As Alexander takes on his new role, the focus remains on maintaining performance standards and ensuring a seamless transition for investors amid the winding down of BML Funds.