F-Squared Investments, the largest provider of exchange traded funds managed portfolios, said today CEO Howard Present has decided to leave the firm. Present will be replaced by Laura Dagan.
Dagan, a member of F-Squared’s board of managers since 2011, comes to the helm of the Massachusetts-based firm two months after the Securities and Exchange Commission served the company with a Wells Notice, which could be a sign the Commission is considering a civil suit against F-Squared.
“Late last year, the firm told clients it was being investigated by the SEC, and earlier this year the company said the regulator’s investigation found the firm’s historical returns overstated performance,” the Wall Street Journal reported in September.
F-Squared had $28 billion in assets under management at the end of the third quarter, according to a statement issued by the firm, meaning the firm controls over a quarter of the capital allocated to ETF managed portfolios.
““Since co-founding F-Squared, I have watched the firm grow from a six-person startup to the dominant player in its space. I couldn’t be prouder of the company we have become, but I believe it is in the best interests of our firm and our clients that I step down. I can’t think of a more qualified professional than Laura,” said Present in the statement.