Market fled to Altshuler Shaham, now the veteran founder steps back

Altshuler Shaham, Israel's third-largest investment house, is undergoing a significant management overhaul following a severe crisis: within five years, clients managing 140.3 billion shekels left, and it dropped from first to third place in the provident fund industry. Founder Gilad Altshuler publicly admits for the first time that he has reduced his involvement in day-to-day management and relinquished authority, as part of a reorganization that includes division into sectors with sector heads. Among the appointments: Nadine Baudot-Trachtenberg as chair of the investment committee. The crisis is also reflected in the company's stock, trading at a value of 1.3 billion shekels.

Altshuler Shaham, Israel's third-largest investment house, is facing one of the most severe crises a financial institution in Israel has experienced in the past decade. Within five years, clients managing 140.3 billion shekels left, and it deteriorated from first place in the provident fund industry to third, losing about 20% of market share. In response, founder Gilad Altshuler publicly admits for the first time that he has reduced his involvement in day-to-day management and relinquished many authorities to disperse decision-making. Over the past two years, a management reorganization was carried out, dividing the investment house into sectors, each with a sector head. Altshuler explains that previously he managed both strategy and tactics, and now he deals only with strategy. Among the new appointments: Leah Ferminger as head of investment management for provident and pension funds, Yotam Ironi as head of global equities, Shimon Oliel as head of Israeli equities and corporate bonds, and Nadine Baudot-Trachtenberg, former deputy governor of the Bank of Israel, as chair of the investment committee. The crisis is also reflected in the stock price, trading at a value of 1.3 billion shekels, even though it rose 15% in three years, while the financial index soared 222%. The investment house is expanding its activities in credit and alternative investments to diversify revenue sources.