RS Cites 'Fundamental Difference of Opinion' in Falling Out (Update)
RS Investments has fired
'The trustees of the fund chose not to renew their contract,' said Rowena Itchon, RS spokesperson. 'We had fundamental differences of opinion in overall business management unrelated to performance issues.'
The news came as a surprise to Elijah: 'The discontinuance of the relationship was unexpected,' said Michael Dunn, chief operating officer for the San Francisco firm.
Dunn also expressed surprise at RS's characterization that the firms disagreed on 'overall business management.' Instead, Dunn explained the firms had been renegotiating their sub-advisory contract for some time and had difficulty arriving at a satisfactory conclusion.
Ron Elijah, CEO of Elijah, had managed the Value + Growth and Information Age Funds since their inception. At the time, Elijah had worked for RS but left in 1999 to start his own firm, which sub-advised the pair of funds.
'The growth in our business has required us to further define our focus,' said Elijah. '
Near the end of last year, fundsupermart.com reported that Elijah dropped its sub-advisory relationship with the United Global Internet Fund, a
In the mutual fund arena, Elijah continues to sub-advise the AIC Global Technology Fund as well as the Aetna Technology Fund.
John Wallace is now the lead portfolio manager for the $350 million Value + Growth Fund. Wallace also manages the MidCap Opportunities Fund and co-manages the Diversified Growth Fund.
James Callinan and Stephen Bishop are the lead portfolio managers for the $125 million Information Age Fund. They also manage the Internet Age Fund.