Brian Hessel, managing director and high-yield portfolio co-manager at J. & W. Seligman in New York, has resigned, according to a senior executive at the firm. Hessel could not be reached for comment. Paul Guidone, Seligman's ceo, was in Germany, and messages left for him were referred to Hank Green, a public relations executive at Adler & Associates, which represents the firm, who declined comment. Hessel's exit marks the second high-profile departure from the junk team at Seligman, which has some $2.5 billion in high-yield assets.Dan Charleston, who had been the top high-yield portfolio manager, was let go over the summer after the firm suffered heavy losses in its portfolio, according to the senior Seligman executive. As of last week, the high-yield fund was down some 17% year-to-date, according to Morningstar.com. Charleston could not be reached for comment.
A senior sell-side analyst who has had regular contact with Hessel for several years calls him one of the best young analyst/portfolio managers in the business, and says he is regularly among the first candidates mentioned by headhunters whenever top portfolio management positions become available. But Hessel had rejected several inquiries and was happy at Seligman, says the analyst, who assumes that his discontent grew after the firing of Charleston. Charleston reportedly hired, developed, and promoted Hessel.
It is not known whether Seligman has found a replacement for Hessel. The head of the high-yield group is now Ken Peterson, who came over from New York competitor Fortis Advisers to replace Charleston. Peterson was traveling and did not return calls placed with his secretary.