Johnson leaves 'em guessing about sale

Fidelity watchers speculate as chairman makes rare statement to ease concern

It's a tough time for Fidelity Investments. Like other financial institutions, the Boston mutual fund giant is laying off thousands of employees after falling markets cut into its revenue. Also, key executives brought in recently still have homes in the New York area, leading to concerns the storied firm is being readied for a sale.

But Fidelity chairman Edward C. "Ned" Johnson III, whose family controls the private company, doesn't want anyone to worry.

In response to questions about sale concerns, the reclusive Johnson, 78, issued a rare statement to the Globe: "I must confess that this is the very first time I've heard that we are selling Fidelity. I appreciate the Globe letting me know this important fact. In all seriousness, this sounds like a rumor put out by an investment banker looking for business. We're doing very well as a private company and have for many years. We are financially strong and moving forward aggressively against our competition in a great many areas. But we are also a conservative company . . . and, like everyone else, we are watching our pennies."

So does that mean Fidelity isn't for sale? Johnson wouldn't say more, according to a spokeswoman.

Johnson's statement amounts to the latest fodder for those trying to figure out how one of the world's largest mutual fund operators is faring in the current economic crisis. The company's funds still total more than $1 trillion, according to research firm Lipper Inc.

But Johnson and other executives are known for their reticence when it comes to business strategy. For instance, spokeswoman Anne Crowley yesterday declined to confirm a recent report in the Economic Times of India that it is looking to sell a technology unit in Bangalore with 2,000 workers.

Johnson's point man is Rodger Lawson, named president in 2007. Lawson keeps a residence in Boston, but also has one in Manhattan and remains an active voter in New York. At least three other senior hires also still are registered to vote from New York area residences, records show, including the men who run Fidelity's asset-management division and its institutional business, leaving many to wonder if the out-of-state ties presage deeper changes should Johnson step back from running the company.

"The fact that none of these people moved here makes them look like short-timers," said one former Fidelity employee, speaking on condition of anonymity because Fidelity didn't authorize the remarks. "So the question is, is Ned preparing to sell the company? It doesn't look like he's making a long-term play," the former employee said.

In response to the speculation, Lawson issued a one-word statement: "Ridiculous."

Crowley had a bit more to say. She said Lawson spends most of his working time in Boston, but Crowley wouldn't comment on whether he or the other recently arrived executives maintain primary residences here.

It's reasonable for some executives to have homes outside of the Boston area, she added, given that Fidelity has developed major operations in the New York area and elsewhere.

While Boston remains Fidelity's headquarters, she said, "We're an international company with multiple locations throughout the US and the world, and about three-quarters of our employee base is located outside of Massachusetts."

Lawson, a onetime Fidelity marketing executive, most recently worked for Prudential Financial in New Jersey.

Robert Chersi, a former UBS executive who last year was named finance chief of Fidelity's financial services business, is listed as an active voter in Ridgewood, N.J.

Michael K. Clark, a former JPMorgan Chase executive now leading Fidelity's institutional services business, is listed as an active voter in Queens, N.Y.

Last, Michael Wilens, who left Thomson Reuters to run Fidelity's asset-management unit, is listed as an active voter in Westport, Conn.

All of the men have used those addresses when they made political contributions, which required them to list their employer.

Worries over the New York connections mirror concerns about the diminishing influence of leaders of other companies that were once run from Boston, including FleetBoston Financial Corp. and Gillette Co. James Lowell, editor of the Fidelity Investor newsletter, an independent publication, said the Empire State ties contrast with past Fidelity leaders such as Robert Reynolds and Robert Pozen, who both remained in Massachusetts even after leaving the company.

The New York residences, Lowell said, suggest the company could shift itself so it is "operated from New York down the road as opposed to Boston."

For one thing, the collapse of the investment banking industry has left a lot of empty office space in Manhattan, Lowell said.

He added: "I don't have the sense this is happening, but I have the sense it could happen. We associate Fidelity with Boston by virtue of the fact that its owners are here, but it's not that it has to be here for any other reason."

Ross Kerber can be reached at kerber@globe.com.