Midanek/Pak Advisors, a nine month old Walnut Creek, Calif., fixed-income fund manager, has reached $60 million under management, coming up short of its goal of $250 million by mid-year set last October. "I've done this [started up a firm] before and it's more difficult now than ever before to be a start up," said Jim Midanek, cio. "We fully intend to reach holdings of $250 million within the next two to three months," Midanek added. Midanek attributes the lower than expected funds under management to the fact that fiduciaries are being very cautious about selecting start- up firms. They prefer larger firms with less risk potential and a bigger footprint.
Midanek and his co-manager John Pak left Turner Investment Partners late last year to found the new firm. "We are beginning to spread into large medium size plans that include corporate and university treasuries and hope to be a real business within the next six months," Midanek said. "It's a long process, but I'm very encouraged."
Midanek/Pak is hopeful to be in the position to hire another portfolio manager soon after the new year.