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Fidelity's Hondros quits
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September 24, 1997: 3:13 p.m. ET
Top retailing executive takes job at Pilgrim Baxter & Associates
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NEW YORK (CNNfn) - Paul Hondros, the top retailing executive at Fidelity Investments, will leave the mutual-fund giant to take a job as president and chief operating officer of Pilgrim Baxter & Associates, managers of the PBHG family of mutual funds.
"Paul's a proven innovator in the mutual fund industry," said Pilgrim Baxter Chief Executive Officer Harold Baxter Wednesday. "His role will be to make the PBHG Funds excel in terms of product development, service and client satisfaction."
Baxter, meanwhile, will focus on strategic business development and Pilgrim Baxter's existing institutional client base, while Senior Partner Gary Pilgrim will continue to manage the PBHG Growth Fund and institutional separate accounts.
"This step reinforces our long-standing commitment to the independence of the investment team from the day-to-day management of the business," said Pilgrim.
Pilgrim Baxter, a wholly owned affiliate of United Asset Management Corporation, is an SEC registered investment advisory firm established to provide specialized equity management for mutual funds, pension and other institutional accounts.
Hondros' appointment will be effective on October 9, 1997.
Hondros is one of several candidates that had been named as possible successors to Fidelity Chairman Edward C. Johnson III.
Named president of Fidelity's retail group last year, Hondros was immediately charged with restoring Fidelity's market share. Rumors persist that Hondros' efforts have met stiff internal opposition, although Hondros denies those charges and says Johnson has backed all his efforts.
In the past year, Hondros has fired a Fidelity advertising agency, shut down existing ad campaigns and increased industry-sector fund sales through aggressive promotional campaigns.
In addition, he reduced the prices for online brokerage trading and expanded Fidelity's index fund offerings.
Fidelity, which manages $570 billion in assets, has improved the performance of its stock funds, including its flagship Magellan fund. However, Fidelity has faced dwindling mutual fund market share and continues to fight off competition from discount brokerages like Charles Schwab Corp.
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