Gilad Altshuler Sells Major Stake in His Firm Amid Career Shift

Gilad Altshuler, a distinctive figure in Israel's capital market known for his unconventional style, has sold a significant portion of his life's work, the Altshuler Shaham pension company, which manages NIS 112 billion. The sale, valued at NIS 1.8 billion, marks a considerable decrease from its peak valuation of NIS 4.4 billion. Altshuler himself was notably absent from the final signing of the deal, opting to sleep while his signature was affixed remotely via a stamp, a move mirroring his absence from crucial negotiations during the acquisition of Psagot five years prior.

This departure comes after a challenging period for Altshuler Shaham, which saw its investment performance decline, particularly due to a substantial investment in the Chinese market early in the decade that yielded poor returns. Competitors have since surpassed the firm, leading to significant client withdrawals and a dip in Altshuler's reputation as a market guru. He himself acknowledged a dent in his self-confidence, contemplating retirement and the possibility that he was no longer suited for the industry.

While Altshuler is not retiring completely and will retain his private company, his involvement in the pension fund management, now significantly reduced in scale, is uncertain. He has been shifting his focus in recent years towards personal interests, including tennis, animal care, veganism, and spiritual pursuits, indicating a reduced priority for his professional work.

Yair Levinstein, who was instrumental in the Psagot acquisition and is now set to increase his holdings in the pension company, appears to be a key figure driving the current transaction. He has been actively seeking a buyer for Altshuler Shaham's holdings and is reportedly consolidating his influence within the firm.

The buyer is Vinshel, a company led by former Ayalon Insurance CEO, who previously acquired Ayalon and is now making a significant move into the pension fund market. The article suggests Vinshel should learn from Altshuler's experience, implying that market downturns and strategic missteps, rather than just 'karma,' can lead to a decline in fortunes.