Institutional shareholders
have big stakes in Hawaii
public companies
Hawaii companies represented more than $100 million in the combined portfolios of six U.S. financial institutions at the end of last year, a study showed.
Data provided by BigDough.com revealed that Boston-based Wellington Management Co. LLP held the biggest domestic institutional stake in the state at $365.2 million. Most of Wellington's stake was in Bank of Hawaii Corp. at $308 million, the largest amount invested in a Hawaii company by any U.S. institution.
Besides growth investor Wellington, Boston-based Fidelity Management & Research Co. ($107 million) and San Francisco-based Barclays Global Investors N.A. ($104.2 million) also had investments in Bank of Hawaii that exceeded $100 million.
Overall, Barclays Global Investors, which uses an index investment style, had the second-largest stake in Hawaii companies at $191.5 million. Rounding out the top six are Fidelity Management & Research (growth style), $171.4 million, Naples, Fla.-based Private Capital Management Inc. (value style), $145.2 million; Santa Monica, Calif.-based Dimensional Fund Advisors Inc. (quantitative style), $121.6 million; and First Hawaiian Bank subsidiary Bishop Street Capital Management Inc. (growth style), $115.2 million.
A spokeswoman at Wellington declined to answer questions about the company's Hawaii investments. "We don't talk to the press," she said. "We're a private company and we prefer to keep it that way."
In addition to Bishop Street, other Hawaii institutions listed in the study were Bank of Hawaii's Pacific Century Trust (growth style), $68.3 million, ninth place; and Cadinha & Co. LLC (growth style), $3.7 million.
Tom Taggart, Barclays' managing director of global public relations, said it's no surprise that Barclays is among Hawaii's top shareholders.
"We're the largest provider of exchange-traded funds, which are index baskets that trade like stocks," Taggart said. "We manage $1.1 trillion worldwide and we're often one of the largest owners of any public company."
Taggart said that Barclays, whose parent is U.K.-based Barclays PLC, uses an index-investing style that requires it to buy all the stocks that make up certain indexes.
"We don't visit companies and we don't do company research," he said. "We also don't comment about how we vote proxies. Nevertheless, we manage a lot of money, and it's growing because our approach is very diversified and we'll hold 500 or more stocks in the same portfolio."
In Bank of Hawaii's case, he said Barclays would own Bankoh's stock in a financial index, banking index, midcap index and other indexes in which the stock would be a member.
Three mainland institutions controlled more than $153 million worth of stock in Central Pacific Financial Corp. and CB Bancshares Inc.
Private Capital Management was first at $67.9 million ($41 million for Central Pacific and $26.9 million for CB Bancshares). The firm was followed by Wellington, which held $32.4 million in Central Pacific and $24.8 million in CB Bancshares, with Barclays holding $17.1 million in Central Pacific and $11.4 million in CB Bancshares.
Alexander & Baldwin Inc., the parent of Matson Navigation Co., attracted institutional ownership stakes of more than $50 million by four firms: Bishop Street Capital Management, $71.6 million; New York-based Third Avenue Management LLC, $66.5 million; Fidelity Management & Research, $64.4 million; and Dimensional Fund Advisors, $62.6 million.
Hawaiian Electric Industries Inc., parent of American Savings Bank, had two institutions holding stakes worth more than $10 million. They were Boston-based State Street Research & Management Co., $13 million; and New York-based Royce & Associates LLC, $11.2 million.
Hawaiian Holdings Inc., whose Hawaiian Airlines subsidiary is in Chapter 11 reorganization bankruptcy, was institutionally owned by five firms, led by an $8.2 million stake from Dimensional Fund Advisors. Other Hawaiian Holdings stakeholders, and the worth of their shares, were Willow Creek Capital Management LLC, Greenbrae, Calif., $2.3 million; Barclays Global Investors, $417,268; and the California Public Employees Retirement System, $342,452; and Minneapolis-based US Bancorp Asset Management Inc., $1,965.
