Casey Walsh, the co-head portfolio manager responsible for Prudential Financial's more than $8 billion in high-yield assets, has resigned effective Dec. 31. Paul Appleby, who had been co-head of high-yield with Walsh, will now be the sole head. Mike Collins, a high-yield credit analyst and strategist at Prudential, will assume Walsh's portfolio management responsibilities. Walsh did not return calls placed with his secretary as of press time last Wednesday of the holiday-shortened week.
Walsh had been in the business for several years, saved up some money, and simply had enough, says a colleague. He stresses that despite a tough year in the sector, Walsh was not forced out. Walsh has not announced what his next move will be, though speculation is that he may eventually resurface at a small hedge fund.
The largest of the mutual funds that Walsh manages, the $1.29 billion "A" shares of the Prudential High-Yield Fund, had a year-to-date return of 0.25% through Nov. 20, and was ranked 225 out of 366 in its category by Morningstar.com. The funds, which Walsh has managed since September 1999, account for some 40% of Prudential's high-yield assets.