“While we will maintain distinct style teams, we will now benefit from the synergies of small-cap research, execution and portfolio construction,” said Steve Oristaglio, head of investments, in a press release. “Ned, with his strong performance record and proven leadership abilities, will bring out the best in the teams.”
Shadek’s responsibilities will now also include most of the Specialty Growth area, including Putnam Small Cap Growth Fund, Putnam OTC & Emerging Growth Fund, and Putnam Discovery Growth Fund.
A second realignment will occur in the mid-cap area, according to the release. Kevin Divney and Paul Marrkand, chief investment officers of the Mid-Cap Growth team, will now also become portfolio leaders of the Putnam New Opportunities Fund.
This is not the first structural change Putnam has made since the news emerged of its involvement in the scandal. In June, the Boston-based company split its distribution operation into two pieces including the firm’s institutional business (See Putnam Splits Distribution Operation ). In April, the firm paid over $100 million in penalties to the SEC for its role in the scandal (See Details Emerge About Putnam Settlement ).
Federal and state regulators have been pursuing a wide-ranging investigation focusing primarily on market timing and late trading as well as certain sales practices.