Victory Capital Management

  • Overview

The key to Victory

Victory Capital Management is the asset-management subsidiary of Cleveland-based financial services company KeyCorp.  The firm's 212 employees are spread out over five offices in Ohio, California, New York and Colorado.  Victory may be on the smaller side as far as personnel but when its size is in measure of assets, the firm is living large; in fact, in terms of assets under management, as of June 30, 2009, Victory Capital Management had $45.4 billion.

The company offers investment management for institutions and individuals.  Specifically, the company offers equity investments including deep-value equity, intrinsic-value equity, diversified core equity, large cap-growth equity, midcap core, midcap value, small-cap value and international as well as fixed income, hybrid and structured cash strategies.  Victory pulls its institutional clients from four major sources: public plans, Taft-Hartley plans, corporations, and endowments and foundations.

The other Robert Wagner

The Robert Wagner of Victory Capital Management shares only a name with the actor who married Natalie Wood and played Number Two in the Austin Powers movies.  The firm's chairman and CEO is no actor; he's strictly a business man who's been in top executive positions for the majority of his career.  Before Wagner joined Victory Capital, he was the president and CEO of Gartmore Emerging Managers.  Prior to his tenure at Gartner, Wagner held the chief executive position at a venture-backed enterprise funded by JMI Equity Fund.  Wagner climbed the ladder to the top spot at Victory Capital quickly.  He was hired as president in 2004 and, within one year, was promoted to chairman and CEO.

Cleveland's bank

Victory Capital's parent company, KeyCorp, adds considerable clout to the small firm.  KeyCorp is a commercial and retail banking empire based in Cleveland, Ohio, which ranked 382nd on the Fortune 500 in 2009.  According to Fortune 500 figures, KeyCorp had $104.5 billion in assets in 2008.  Living up to its parent's reputation, Victory Capital's funds are known for making consistent, conservative and smart investments.  In 2008, USA Today made note of that consistency coupled with the growth potential of Victory's Small Company Opportunity Fund which was named to the Mutual Fund All-Star Team for the second consecutive year.  The fund was singled out as a great buy in the category of value funds.  USA Today's rationale for naming the fund an "all-star†comes from the fact that it performed far better than many of its competitors through the year due to its small exposure to financials and high exposure to energy stocks.  Victory also won accolades from The Wall Street Journal for its strong performance thus naming the company's Victory Focused Growth Fund and the Victory Special Value Fund as "Category Kings" in 2007.

Branching out pays off

KeyCorp may have acquired Texas-based Austin Capital way back in 2006, but it seems that the buy is just recently paying off.  Buying Austin helped Victory to diversify its investment products notably in the area of hedge funds.  Victory saw its assets under management in hedge funds grow to $1.5 billion in 2007.  Another area in which the firm was able to expand after buying Austin Capital was international small and middle capitalization stocks, which contributed $580 million assets under management to Victory's portfolio.  Thomas Bunn, former vice chairman of KeyCorp, said that "in each of these instances, we have broadened our offerings, and added skilled portfolio managers who also are developing new products."  In January 2009, Victory was involved in a fraud case involving Arthur Nadel in connection to the hedge funds he manages, but the company was able to clear its name in the end.





Victory Capital Management


127 Public Square
Cleveland, OH 44114
Phone: (877) 660-4400
www.victoryconnect.com

STATS


  • Employer Type: Public
  • Chairman & CEO: Robert Wagner
  • 2008 Employees: 212

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