Touchstone Investments

Putting a Mutual Fund on the Map

A Cincinnati-based mutual fund company, Touchstone employs the “sub-advisor” model—identifying specialized asset managers to develop the funds it offers to institutional and individual investors.  If those funds underperform, Touchstones can simply sever its ties and move on to other, better-performing funds.

One of Touchstone’s funds was a star performer.  The Touchstone Large Cap Growth Fund (TEQAX) returned nearly 23% over three years, compared with the 13% return posted by the benchmark Russell 1000 Growth Index.  However, the TEQAX manager, while a competent media spokesperson, tended to disappear behind his methodology, spending more time talking about stock picks than strategy. 

Makovsky gave him the tools to give reporters want they wanted.  The return was impressive.  Our public relations support helped grow Touchstone’s assets under management from $292 million to $890 million in 2005:  an increase of over 205%.