Wildfires Ravage Los Angeles, Asset Managers Scramble to Maintain Operations
The devastating wildfires sweeping across Los Angeles County have left a trail of destruction, displacing thousands of people, including employees of prominent asset management firms. With over $4 trillion in assets under management, the region’s financial sector is reeling from the impact.
Industry Giants Affected
Los Angeles is home to industry heavyweights like Capital Group, TCW Group, Oaktree Capital, and Ares Management. These firms, which collectively manage a significant portion of the $132 trillion in global assets, are now grappling with the consequences of the wildfires.
Personal Losses Mount
Katie Koch, CEO of TCW Group, which manages $203 billion in assets, revealed that several team members, including herself, have lost their homes to the fires. “A number of our team members have been displaced, and several have lost their homes completely,” Koch wrote in a letter to her colleagues.
Business Continuity Plans Activated
Anacapa Advisors, a $60.5 million hedge fund, was forced to relocate after its new offices in Pacific Palisades were destroyed. The firm’s founder, Phil Pecsok, assured clients that all employees are safe and that the team has successfully activated its business continuity plan, allowing them to work remotely with full access to trading platforms and risk monitoring systems.
Precautionary Measures
As forecasts predict the region’s Santa Ana winds will persist, other asset management firms are taking precautions to ensure business continuity. Oaktree Capital, which manages over $200 billion in assets, remains open for normal business operations, while many of its 700 employees in the area have been affected by the fires. DoubleLine’s employees based in Los Angeles are working remotely due to poor air quality, and the Milken Institute and Dimensional Fund Advisors have switched to work-from-home arrangements.
Remote Work Arrangements
Kevin Philip, partner at Bel Air Investment Advisors, which manages over $10 billion in assets, noted that the experience gained during the COVID-19 pandemic has helped his firm navigate the current crisis. “COVID really set us up for managing through this and keeping our functionality going,” Philip said.
Firms Further Afield
Some large asset managers, like Pimco, which is based in Newport Beach, are farther from the immediate danger zone and have declined to comment on their operations.
As the situation continues to unfold, the asset management industry in Los Angeles is demonstrating its resilience in the face of adversity.
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