Wells Fargo Investment Institute has hired Michael Paciullo as head of operational due diligence, Citywire can reveal.
Based in New York, Paciullo joined the firm in November. He is responsible for leading a five-person team that focuses on operational due diligence, which includes how asset managers place trades and their cybersecurity, among other responsibilities.
He reports directly to Greg Maddox, global head of manager research at Wells Fargo Investment Institute.
'Cybersecurity is a big risk for all financial services firms and the trust and confidence that investors have in this industry starts with knowing their money is secure,' said Maddox.
Paciullo is part of the firm's due diligence committee, which gives him the power to vote or veto on the addition and removal of managers to the platform.
Prior to joining Wells Fargo, Paciullo served as the director of operations at fund of hedge funds Archstone Partnerships from April 2014 to July 2017, according to his LinkedIn page.
Archstone Partnerships, founded in 1991 by former Bear Stearns executive Alfred Shuman, announced that it was shutting down in an investor letter in April last year. The firm cited a changing investment environment and the broader struggles faced by the hedge fund and fund of funds industry, as the reason for the closure, according to a report from the Wall Street Journal.
Since the closure of Archstone, Paciullo has been doing operational due diligence consulting work for a New York-based family office.
Before Archstone Partnership, Paciullo worked as the global head of operational due diligence at investing research firm IAM Research LLC and Pioneer Alternative Investments, respectively. He also served as the director of operational due diligence at Deutsche Bank for over two years.
Prior to this, Paciullo spent over eight years at JP Morgan Chase where he held various roles including working with JP Morgan Alternative Investments in operational due diligence.
The Wells Fargo research team has been on a recruitment drive over the last two years, hiring more than 12 new analysts to take total numbers up to around 47 in global manager research.
That team is responsible for putting together a recommended list of around 1,000 strategies to be used by various business lines within Wells Fargo. These include the broker-dealer Wells Fargo Advisors, Wells Fargo Private Bank, family office Abbott Downing and the pension service Institutional Retirement Trust.
The Wells manager research team is structured by asset class and has offices in San Francisco, New York, Charlotte, St Louis, Denver, Raleigh, London and Hong Kong.
To find out more about the Wells Fargo research process, read Citywire's profile of Maddox here.