Acquisitions: Wasmer Schroeder Buys Into Midwest

Wasmer, Schroeder & Co., an investment adviser specializing in municipal bond portfolio management and based in Naples, Fla., on Friday announced the firm's expansion into the Midwest with a July purchase of the largest shareholder stake in the Cleveland-based GLC Capital Management, a fixed-income investment management firm.

GLC Capital has since taken on the Wasmer Schroeder brand name and will serve as a platform for marketing the firm's services in the Midwest, Michael J. Schroeder, chief investment officer and principle of Wasmer, Schroeder, said in an interview this week. The Cleveland firm previously specialized exclusively in mortgage-backed, agency, corporate, and treasury securities.

"The geographic focus" of GLC Capital presented the opportunity for Wasmer, Schroeder "to be able to focus on bringing in some more muni business in the Midwest, and particularly in the Ohio region," Schroeder said.

Prior to the alignment with GLC Capital, Wasmer, Schroeder managed $251 million for individuals with a high net worth and institutions in separately managed accounts and a hedge fund, which invests in municipal bonds that have defaulted or have been downgraded below investment grade and are illiquid. Overall, 60% of assets under the firm's management were in municipals.

Now is the right time to try and expand the firm's separately managed account business in that area, Schroeder said.

"The wealth transfer landscape looks like it is going to shape up over the next 10 to 20 years, so that separate account management for munis is an excellent growth opportunity," he said.

GLC Capital manages approximately $25 million in individual accounts and a small hedge fund that invests primarily in corporate and mortgage-backed securities.

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