by Jennifer Hill from interactive investor, 28th October 2024:
There are many reasons why a fund might get a new manager, with the retirement of the incumbent manager and poor performance being chief among them.
While some investment houses have navigated the task of replacing a veteran fund manager with aplomb, others have failed to reignite a fund’s woeful performance.
Paying off
Rights & Issues
When it comes to having big shoes to fill, the October 2022 handover of UK smaller companies trust Rights & Issues Investment Trust – from Simon Knott after 39 years to Jupiter’s Matt Cable and Dan Nickols – “must be right up there”, according to James Carthew, head of investment companies at QuotedData.
“Knott had built a fairly focused portfolio of UK small-cap stocks, many of which he had held for decades,” says Carthew. “The Jupiter team’s job was to preserve the best of these, take some large stock-specific risk out and introduce some of their own ideas.”
The result? Over the past year, the trust has returned to near the top of the performance league. “Some of the stocks introduced by the new team have been among the best performers,” says Carthew.
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