Los Angeles-based asset management firms overseeing over $4 trillion in assets are dealing with the aftermath of the region's devastating wildfires. Some are relocating office spaces and supporting staff members who have lost their homes.
Notable industry players in Los Angeles include Capital Group, TCW Group, Oaktree Capital, and Ares Management, managing a significant portion of the $132 trillion in global assets held in the United States. The disruptions coincide with rising U.S. Treasury yields due to expectations of stable interest rates.
Katie Koch, TCW's President and CEO, mentioned that several team members, including herself, have been affected by the fires. Anacapa Advisors, a hedge fund that recently moved to new offices in Pacific Palisades, unfortunately, witnessed the destruction of their building by the Palisades Fire.
These firms are adapting by working remotely, retaining access to trading systems, and closely communicating through platforms like Zoom. As the fires continue to pose a threat, precautionary measures are being taken, like Oaktree Capital ensuring continued operation through power backups and DoubleLine's shift to remote work due to poor air quality.
The Milken Institute and Dimensional Fund Advisors have transitioned to work-from-home setups, along with others like Bel Air Investment Advisors, managing assets remotely due to previous experience from navigating the challenges of COVID-19. Larger asset managers, like Pimco based in Newport Beach, remain out of the immediate danger zone.