That reflects the typical investment approaches of big family offices and foundations, said Raphael Amit, professor of management at the University of Pennsylvanias Wharton School. Read More It was long the biggest owner of Signature Aviation Plc, the worlds largest operator of private-jet bases, before joining a consortium that took the company private this year. [6] Larson accrued over the twenty years from 1995 an 11% compound annual return,[6] and as of 2014 had 100 employees working under his direction. Its unclear where French Gates is keeping her money, including the more than $3 billion that has been transferred from Cascade, and whether shes now setting up a family office of her own. At Ecolab Inc., we promise to treat your data with respect and will not share your information with any third party. [2] It is controlled by Bill Gates, and managed by Michael Larson. The Times reported that a lawyer sent the Gateses a letter alleging that Larson had been sexually harassing a woman who managed a bike shop. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. Get updates on the latest posts and more from ValueWalk straight to your inbox. We want to make sure you get the most out of our platform. [last] (ex. Ltd. All rights reserved. Larson reportedly directs Cascade's investments through Bill and Melinda Gates Investments, a firm that also manages the portfolios of the Bill and Melinda Gates Foundation and other connected entities. Gen Re was in the S&P 500. Once loosely described as family offices or multi-family offices, this linguistic shift aims to put a finer point on their capabilities as independent advisers on family wealth.. Cascade is the personal investment entity of William H. Gates III, the sole member of Cascade. OEM diesel and natural gas engine manufacturer. He also owns some emerging-market debt and high-yield issues. He also has served on several other public company boards providing him relevant corporate governance experience. Cascade has around 100 employees, who, when traveling on business, must stay at a low-cost hotel, not the Four Seasons, despite the fact that Cascade owns a large chunk of the hotel chain. Larson's net worth is projected to be in the millions, though it's unclear where the number lies. Sustaining this needs support from wonderful readers like you. The Times reported that the handling of the situation had put Bill and Melinda Gates at odds. Also read: Bill-Melinda divorce forces $50 billion Gates Foundation to weigh changes. Cascade Investment paid settlements to at least seven people who witnessed Larson's behavior, The Times reported. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. BMGI does not tolerate inappropriate behavior.". This article about a financial services corporation of the United States is a stub. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. A former bond-fund manager, he won Gatess loyalty by delivering consistent returns and instilling in employees the notion that their primary focus was to protect their benefactors good name, according to people familiar with Cascade, who asked not to be named speaking about the companys inner workings. A significant stake in the Four Seasons luxury-hotel chain. Additionally, Michael Larson has been known to create limited liability corporations especially for real estate purchases, keeping Cascades name off the documents. Michael Larson, the son of an industrial engineer, grew up in North Dakota and then in Albuquerque. He also has a small amount of money with Bill Fleckenstein, who runs a short-selling fund. (which is wholly owned by Mr. Gates) and the Bill & Melinda Gates Foundation Trust own in the aggregate approximately 15% of Republic Services, Inc.'s common stock. The company delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, maintain clean and safe environments, and optimize water and energy use. [4] Cascade is the successor company to Dominion Income Management, the former investment vehicle for Gates's holdings, which was managed by convicted felon Andrew Evans. Larson reportedly told a Black employee she lived 'in the ghetto. Mr. Larson has invested the Microsoft co-founder's money in farmland, hotels, stocks, bonds, even a bowling alley. In addition, as a professional investor and as the chief investment officer of Ecolabs largest stockholder, Mr. Larson brings a long-term stockholder perspective to the Board. Michael Larson is an American money manager. ", https://en.wikipedia.org/w/index.php?title=Michael_Larson_(businessman)&oldid=1147949433, This page was last edited on 3 April 2023, at 05:49. One remarkable feature of the portfolio is how little it changes. He also has a position in junk bonds and foreign government bondsDanish, German, Canadianas well as foreign corporates, gobs of mortgage-backed securities, and all sorts of hedging investments. The manager had broad leeway from Gates on investment decisions, they both have said. Michael Larson, 61, the man in charge at Gates's money-management firm, Cascade Investment, is reported to have judged women on their attractiveness and made sexually and racially. He grew up in North Dakota and Albuquerque, New Mexico, and received an MBA from the University of Chicago, Fortune reported in 1999. Michael Larson doesnt restrict himself to stocks; he looks at bonds, currencies, commodities, land, and direct investments in companies. Sources also told The Journal that Gates and Larson mostly had a professional relationship and that they rarely interacted socially. Married with three children, Michael Larson prefers Levis jeans and dark pink shirts. Belong anywhere with Airbnb. Bill and Melinda Gates announced on May 3 that they are splitting after 27 years of marriage. This helps family offices professionalise earlier than they would have before. A spokesman declined to comment to The Times. That figure also includes funds run by outsiders. analyse how our Sites are used. Other directorships held during the past five years Director of Republic Services, Inc. and Fomento Economico Mexicano, S.A.B. So after the deal, index managers had to sell Berkshire, depressing the price.. He adds that family offices are changing and evolving in a number of fundamental ways. Ecolabs innovative solutions improve operational efficiencies and sustainability for customers in the food, healthcare, life sciences, hospitality and industrial markets. Bill Gates money manager: What to know about Michael Larson, Bennett inks new deal with Schaumburg Boomers, Bill Gates Says He's Fighting Climate Change. Learn more about Michael Larson, Investment Advisor, Cascade Investment Group including contact information, career history, news and intelligence. Access your favorite topics in a personalized feed while you're on the go. [citation needed], Larson is a regular attendant of the Allen & Company Sun Valley Conference. A spokesman for Cascade said BMGI is changing its name to allow for the evolving needs of the Gates family and their philanthropic work and that the groups investment strategy and organizational structure wont change. I thought it was the old FBI trick, chuckles Larson, you know, ask for 13 and randomly pick three. 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The two foundations merged to form the Bill & Melinda Gates Foundation during 2000. It does not handle logistics, payroll or expenses for the foundation and is purely an asset management firm that invests Gatess personal wealth. ThePrint with exceptional reporters, columnists and editors is doing just that. In a March Ask me anything event on Reddit, a user asked about his purchases of farmland. His Investments Say Otherwise. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. A spokesperson for the Gates Foundation told Insider in a statement: "BMGI is a professionally run organization with oversight and governance, including regularly occurring HR reviews that have taken place for over 20 years. The New York Times reported that the handling of the situation had put Bill and Melinda Gates at odds. They talked about AlbuquerqueMicrosofts hometown in the early daysabout risk management, and about investing, of course. Michael Larson runs a tight ship with his employees as well. Cascades assets have periodically been boosted by proceeds from the sales of Gatess Microsoft stock. The rebranding is the latest step in the unfolding story of what will happen to one of the worlds largest fortunes when Gates and French Gates finalize their divorce. He attended Claremont College, finishing in three years with a degree in economics, and then went directly to the University of Chicago, where he picked up an MBA at the age of 21. "There's a clear process for employees, contractors and partners to share concerns either anonymously or by name, and any issue raised over the company's history has been taken seriously and resolved appropriately," the spokesperson continued. In 2008, it bought a 3 per cent share of Carpetright, the flooring retailer, but has since reduced its stake. When people find out that Cascade has made an investment in something, thats not Bill Gates, he said in the Fortune interview. jane.doe@cascadeinvestors.com), which is being used by 100.0% of Cascade Investment work email addresses. Offers may be subject to change without notice. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. Noits Bill Gates, and could he [headhunter named Bert Early] please have the names of 13 references. Larson is the center of numerous claims, ranging from sexism to racism. Berkshire isnt. At the time, the portfolios both for the foundation and for the Gateses personal money mostly consisted of bonds, with some bets on private equity, commodities, Florida real estate and British hotels. New York: For almost three decades, Michael Larson has quietly shuffled around one of the worlds biggest fortunes with a chief priority: Keep his fabulously wealthy bosses out of the headlines. She was unaware of most of the allegations involving Larson given her lack of ownership of and control over BMGI, her spokeswoman, Courtney Wade, said in a statement. Part owner of Whistler Four Seasons ski resort in Canada, At least 100,000 acres of farmland across the United States, A 490-acre ranch in Wyoming once owned by Buffalo Bill. He started digital-image company Corbis Corp. in 1989. BMGI is an organisation that manages the portfolios of Cascade, the Bill & Melinda Gates Foundation Trust and other entities, but again it does not label itself as a family office. Larson was a student of Professor Jerry St. Dennis while at Claremont McKenna College. Mohamed said its of little surprise that Larson has remained in his role after the allegations, given his decades-long tenure with Gates and the loyalty it has likely engendered. Contact. And second, we just had an inflow of a couple of billion dollars.. Micheal Larson is the money manager at a firm called Cascade Investments, a company whose only job is to manage the wealth of Gates and French Gates (Cascade is also referred to as . "Cascade Investment (Bill and Melinda Gates Investments (BMGI)) - Family Office, United States - SWFI", "Cascade Investment, Bill Gates' wealth manager", "A Culture of Fear at the Firm That Manages Bill Gates's Fortune", "Bill Gates uses farmland as an investment outlet buying up potato, carrot and onion farms", "Bill Gates Transferred Billions Of Dollars' Worth Of These Two Stocks To The Gates Foundation", "Bill Gates Sells $940 Million of CN Rail Stock, Trimming Stake to 9%", "Four Seasons Hotels agrees to bid from Gates and Alwaleed", "Bill Gates' stake in Ecolab could get bigger", "Canadian National Railway Company | SC 13G", "Could Bill Gates be the next owner of Strategic Hotels? Michael Larson, head of Cascade Investment, shared nude photos of women online with co-workers, rated female employees' attractiveness, and made a racist comment to a Black employee, among. Larson has and continues to operate under the radar with the exception of a rare interview with Fortune in 1999. I needed to have complete faith in the person I picked since I didnt ever want to have to look over their shoulder.. Bill Woodson, north America head of the family office group at Citi Private Bank, says: While family offices take different forms, the challenges they face are very similar and, as a result, the ultimate solutions they adopt as they evolve tend to be similar, although addressed with varying levels of focus, staffing and professionalism.. Recently, Gates' equity has been shifted around (for example, the foundation just sold all of their Apple and Twitter stocks). Biography Chief Investment Officer to William H. Gates III. My most important job is asset allocation, he says.