Lincoln Cuts Staff in Wake of Vanguard Loss

July 30, 2001 ( - Lincoln Capital Management has reportedly cut staff by more than 10% in the wake of last month's termination as manager for Vanguard's $12 billion U.S. Growth Fund.

Citing an industry source “familiar with the situation,” Crain’s Chicago Business also notes that the firm now has about 100 employees.

The firm had managed the fund since 1987 (see NewsDash, The Feeling’s Mutual – June 25), but was replaced by a team from Alliance Capital Management due to performance concerns. At that point, the fund had lost more than 24% year-to-date.

Alec Knowles, marketing director for Lincoln, confirmed that the company had trimmed staff but wouldn’t specify how many were let go, according to the report. “It’s tied to a lot of things,” Mr. Knowles said, according to Crain’s. “Vanguard would be a piece of it and the market would be a piece of it.”

– Nevin Adams