First Manhattan Co. (FMC) was founded in 1964 by a group of

financial industry Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, ...

executives led by David "Sandy" Gottesman. FMC remains an owner-operated investment advisory firm. Robert Gottesman, David Gottesman's son, is currently the firm's CEO. FMC is based in

New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

Background

FMC provides professional investment management services to high-net-worth individuals, as well as to partnerships, trusts, retirement accounts, mutual funds and institutional clients. The firm manages investments on a fully discretionary basis for accounts ranging from under $1 million to over $100 million. The firm currently manages in excess of $16 billion, utilizing a long-term, value-oriented investment approach. The firm's clients are significant owners of

Berkshire Hathaway Berkshire Hathaway Inc. () is an American Multinational corporation, multinational conglomerate (company), conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from ...

stock, and the firm has established a reputation for utilizing investing strategies similar to that espoused by

Warren Buffett Warren Edward Buffett ( ; born August 30, 1930) is an American business magnate, investor, and philanthropist. He is currently the chairman and CEO of Berkshire Hathaway. He is one of the most successful investors in the world and has a net w ...

. The firm's founder, David Gottesman, was an early investor in Berkshire Hathaway and he has maintained a long-standing friendship with Mr. Buffett. The firm's investment approach is to establish long term positions in portfolio companies, most often relying on

fundamental analysis Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities, and earnings); health; and competitors and markets. It also considers the overall state ...

and targeting value in the

public equity A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (list ...

and

fixed income Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the prin ...

markets of the United States.

Leadership

David Gottesman founded the firm in 1964. Mr. Gottesman is a member of the Board of Directors of Berkshire Hathaway, Inc. He was a director of the

Securities Industry Association The Securities Industry Association (SIA) was an association of firms and people who handle securities (in the financial sense) (stocks, bonds and their derivatives). In 2006, it merged with the Bond Market Association to form the Securities ...

. Robert Gottesman joined First Manhattan Co. in 1987 and is currently the firm's Chief Executive Officer and Chairman of the Management Committee. The firm's Management Committee is responsible for the management and day-to-day operations of the firm. It is currently composed of: Robert Gottesman (CEO), Cheryl Kallem (CFO), Timothy Muccia, Neal Stearns, Jack Varon and Jay Vodofsky.

Recent Developments

In an unusual step for FMC, the firm took an active role in a proxy contest involving the management of a biotech company, VIVUS, Inc., a company in which the firm and its clients hold a significant position. FMC led the initiative to replace the board and its CEO. The contest was settled in July 2013 with the company appointing a new CEO and replacing a majority of the board in an effort to maximize shareholder value.

Other

The firm currently advises two mutual funds, the FMC Select Fund and the FMC Strategic Value Fund.

References

External links

* {{authority control, state=expanded Financial services companies established in 1964 Financial services companies based in New York City Investment management companies of the United States American companies established in 1964 1964 establishments in New York (state)