Altshuler Shaham Loses Market Grip: Founder Steps Back
Altshuler Shaham, Israel's third-largest investment house, is undergoing a major reorganization after losing 140.3 billion shekels in client assets over five years. Founder Gilad Altshuler is decentralizing decision-making to overcome the crisis.
The investment house Altshuler Shaham, the third largest in Israel, is dealing with one of the most acute crises a financial entity in Israel has known in the last decade. Within five years, clients have withdrawn 140.3 billion shekels, causing the firm to drop from first to third place in the provident fund industry, while giving up about 20% of its market share.
"Altshuler Shaham is no longer a one-man show, it is no longer just Gilad Altshuler — the house is being rebuilt. If in the past the way of managing investments was vertical, today it is balanced," a senior official at the firm describes the change implemented over the last year and a half.
For the first time, Gilad Altshuler admits publicly that he has reduced his involvement in day-to-day management to diversify the decision-making process. According to him, a management reorganization has been carried out: "The most significant change was the division into departments, with each having a head. In the past, I managed both strategy and tactics. Today I only deal with strategy. Each head of department is free to act in their field independently."
