TRADING PLACES: North Carolina's largest money managers reported strong growth in a banner year for investors.

• Author: Mildenberg, David
• Position: MONEY MANAGERS

It was a solid year for the state's money-management industry, particularly for the biggest players, according to BUSINESS NORTH CAROLINA's third annual ranking of companies that oversee at least SI billion in assets. Ten of the 20 largest firms reported greater gains in assets under management than the 22% gain registered in 2017 by the Standard & Poor's 500 Index, a common measure of investment performance. Another five companies had increases of 10% or more, according to filings with the U.S. Securities and Exchange Commission.

The two biggest players accounted for most of the gains, with top-ranked Raleigh-based CapFinancial Partners LLC continuing its rapid growth. The parent of CapTrust now manages more than $270 billion, marking a 57% increase over die last two years related to investment gains and acquisitions.

The data is based on the most recent required reports filed by the companies, plus other details compiled by BrightScope Lie., a San Diego-based research company. Hie list cites the biggest North Carolina-based managers based on assets under management, or AUM. Most of the companies invest in stocks and bonds, though the list includes a few private-equity groups that snap up stakes in private companies. Fidelity Investments, Morgan Stanley and other dominant out-of-state managers are not included.

In a March recap of its 2017 fiscal year, CapTrust said it added 128 workers--it now employs 433. The company, which has acquired 28 adviser practices since 2005, is owned by 267 employee shareholders, who have benefited from an annual investment return of more than 25% since 2005.

The second-biggest manager, Barings LLC, grew by 10% to a reported $241 billion in assets under management. It is part of a much larger company, Springfield, Mass.-based Massachusetts Mutual Life Insurance Co. Charlotte-based Barings moved in March to a new downtown headquarters building developed by a partnership including MassMutual.

Other fast growers include three Charlotte-based managers: Alumina Investment Management LLC has doubled to $8.4 billion in AUM in the last two years; Independent Advisor Alliance LLC has tripled to $3.1 billion in the same period; while Carroll Financial Associates Inc. reported a 39% gain last year and now oversees $2.5 billion.

The biggest decliners were Charlotte-based Corrum Capital Management LLC, which said it manages $1 billion, down from $1.7 billion a year earlier, and Chapel Hill-based Morgan Creek Capital...