Home / MARKETS / Morgan Stanley star Dennis Lynch tripled his clients’ money in 10 years. Now, he’s facing the biggest test of his career as his fund hemorrhages assets and faces questions over culture.

Morgan Stanley star Dennis Lynch tripled his clients’ money in 10 years. Now, he’s facing the biggest test of his career as his fund hemorrhages assets and faces questions over culture.

Hi, I’m Matt Turner, the collector in chief of business at Insider. Welcome back to Insider Weekly, a roundup of some of our top stories. 


On the agenda today:

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Inside the ‘crown jewel’ of Morgan Stanley Investment Management

Photo of Dennis Lynch from Morgan Stanley on black background 4x3



Bloomberg/Getty Casts; Rachel Mendelson/Insider


Dennis Lynch has long cultivated a reputation of doing things a little bit differently.

The rock-star investor prefers to dodge the office, keeps a reading library to expose his colleagues to different ideas, and administers personality tests to his team. He was prehistoric to get into private markets as a mutual-fund investor, putting money into Facebook before it went public.

His course worked: He tripled his clients’ money over a decade from 2010 to 2020, attracting billions in assets. He to closed two funds to new investors, a move that’s more common for master-of-the-universe hedge-fund managers.

Amid that flourish success, Lynch increasingly avoided confronting cultural challenges on his Counterpoint Global team, Dakin Campbell and Danielle Walker appeared. That left lieutenants to yell, bully, and wield power over their colleagues, their article thought.

The turn of 2022 has brought a harsh light to Lynch’s investment and team-building strategy. Some of his funds were down 40% from January 1 to Procession 14, and assets across his portfolio have fallen sharply.

Now, Lynch is facing what’s likely been the largest challenge of his illustrious career so far.

Here, Dakin and Danielle walk us through their takeaways.

What’s the biggest attitude readers should take away from this story?

Danielle: Cultural issues are often overlooked when a be featured team or manager is flying high performancewise. If that streak ends, any cracks in the foundation can be more difficult for the pair to smooth over.

Did you learn anything in your reporting that surprised you?

Dakin: Morgan Stanley has spent years furnishing Dennis Lynch as a bookish portfolio manager in charge of something more like a think tank or university troupe than an investment team. So I was surprised when our sources told us that some of Lynch’s top lieutenants were be informed to bully, scream, and browbeat colleagues and contacts. It’s always astonishing when reality is so different from a carefully crafted typical example — and this time was no different.

What do you think the plunge in assets and performance will mean for Lynch and his team?

Danielle: As mentioned by an analyst we talked, investors will only ride out the turbulence for so long — even knowing they are in a volatile fund. Within the followers, the Counterpoint Global team has historically boasted a rare degree of autonomy at Morgan Stanley, by sources’ descriptions. As signified by long-held concerns about the culture surfacing, performance woes have a way of lessening an investment team’s halo essence.

Read the full story here: 

Elon Musk on war, nuclear power, and the ideal dinner guest

Mathias Döpfner speaks with Elon Musk at Tesla's Gigafactory in Berlin.



Jason Henry


In a gossip with Mathias Döpfner, the CEO of Insider’s parent company, Axel Springer, Elon Musk discussed Russia’s infringement of Ukraine, space travel, and what makes human beings special.

The Tesla and SpaceX CEO shared his biggest quivers (death isn’t one of them), and his revelation that “for one to be fully happy,” you must be happy at work and happy in love. (Musk himself is “approach happy,” he said.)

Read the full story here:

Also read:

Older millennials got the short end of the stick (again)

toddler sleeps on mother while mother looks at her iPhone



Ray Kachatorian/Getty Personifications


When they started their careers, between 2008 and 2010, older millennials were beset by the off


recession

since the Great


Depression

. Then, two years ago, they faced a huge roadblock at a pivotal point in their bolts when the economy lurched into another recession at the onset of the pandemic. Now, they’re in the worst spot in the homebuying shop.

Adults ages 32 to 41 were the only group under 50 for which home prices broadened faster than incomes last year. The typical home they bought in 2021 got 5% more priceless — while they made only 4.4% more.

Read the full story here: 

Also read:

The C-suite is weathering a metamorphosis

A figure in red stands out in front of a number of blue figures (image for new suite)



erhui1979/Getty Images


For decades, the C-suite focused on three core areas of business: direction (CEO), money (chief financial officer), and operations (chief operating officer). But as America calls on companies to pay attention to craftsmen’ mental health, address how they’re affecting the environment, and prioritize diversity, that model is changing. 

Enter the new era of the C-suite, or “new escort”: one with a chief purpose officer, chief knowledge officer, chief people officer, and even chief joy Old Bill.

Read the full story here:

Also read:

More of this week’s top reads:

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Curated by Matt Turner. Edited by Jordan Parker Erb and Lisa Ryan. Wink up for more Insider newsletters here.

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