In the course of a normal month we’ll highlight 60-70 manager changes in equity and allocation funds. We mostly skip bond funds because, frankly, it’s a danged rare fixed income team that’s materially affected by the departure of a single individual. In a really quiet month, 38 funds saws partial or complete team changes. That’s not only half the long-term average but only about a third of the changes reported last month.
By far the most significant, if only symbolically, was the announced retirement of David Poppe at Sequoia Fund (SEQUX). Mr. Poppe was famously a champion of the Valeant investment that broke Sequoia. The magnitude of the misstep was reported by Chuck Jaffe in 2016:
Indeed, when Morningstar first started evaluating funds in the mid-1980s, analysts there privately used a “Sequoia-Steadman” standard, effectively comparing other funds to what they considered the best fund in the industry — Sequoia — or the worst, the now-defunct Steadman Funds.
Today, however, Sequoia itself has been acting more like Steadman. It posted a dismal 7.3% loss in 2015, which has been followed up with a decline of 11.6% so far this year, both returns near the bottom of the fund’s large-growth peer group.
But the real problem has been Sequoia’s management stubbornness, infighting, and governance issues, all centered around the fund’s investment in controversial Valeant Pharmaceuticals International US:VRX which at one point last year accounted for 30% of the $5.6 billion fund’s assets (it’s closer to 20% recently).
Now the question is whether Harris, Gokgol-Kline, Magyar and Sheridan can restore the legacy created by Ruane, Cunniff and Goldfarb.
By far the most consequential change was the departure of Mark Yockey and Charles-Henri Hamker from Artisan International Small Cap. Their successor, Rezo Kanovich, is another phenomenally successful manager with a very different portfolio in mind. The fund’s evolution will be signaled in the month ahead by being renamed Artisan International Small-Mid Fund. There are some details in this month’s “Briefly Noted” and we’ll share additional information in a Launch Alert as soon as the name change is official.
| Ticker | Fund | Out with the old | In with the new | Dt |
| ASFIX | Absolute Strategies Fund | Harvest Capital Strategies LLC is no longer listed as a subadvisor to the fund. | St. James Investment Company, LLC and Tortoise Capital Advisors, L.L.C. will continue to subadvise the fund. | 10/18 |
| ARTJX | Artisan International Small Cap Fund | Mark Yockey and Charles-Henri Hamker are no longer listed as portfolio managers for the fund. | Rezo Kanovich will now manage the fund. | 10/18 |
| CAMOX | Cambiar Opportunity Fund | Timothy Beranek and Jeffrey Susman no longer serve as members of the domestic investment team managing the fund. | Brian Barish, Anna Aldrich, Andrew Baumbusch, and Colin Dunn will continue to manage the fund. | 10/18 |
| CAMSX | Cambiar Small Cap Fund | Timothy Beranek and Jeffrey Susman no longer serve as members of the domestic investment team managing the fund. | Brian Barish, Anna Aldrich, Andrew Baumbusch, and Colin Dunn will continue to manage the fund. | 10/18 |
| CAMMX | Cambiar SMID Fund | Timothy Beranek and Jeffrey Susman no longer serve as members of the domestic investment team managing the fund. | Brian Barish, Anna Aldrich, Andrew Baumbusch, and Colin Dunn will continue to manage the fund. | 10/18 |
| CAGLX | Cornerstone Advisors Global Public Equity Fund | No one, but . . . | Brandon Geisler and Robert Susman join the extensive management team. Really Cecil B DeMille hired smaller casts. | 10/18 |
| FDCAX | Fidelity Capital Appreciation Fund | Fergus Shiel, who’s done an exceptional job, is expected to retire effective March 29, 2019. | Asher Anolic and Jason Weiner have joined Mssr. Shiel on the management team and will continue managing upon his retirement. | 10/18 |
| FFGCX | Fidelity Global Commodity Stock Fund | Joe Wickwire will no longer serve as a portfolio manager for the fund after March 29, 2019. | Jody Simes will continue to manage the fund. | 10/18 |
| FPURX | Fidelity Puritan | No one, but . . . | Daniel Kelley joins Harley Lank, Ramin Arani, and Michael Plage on the management team. | 10/18 |
| GSFAX | Goldman Sachs Bond Fund | Jonathan Beinner will be retiring from Goldman Sachs on March 31, 2019. | Michael Swell will continue to manage the fund and will be joined by Ashish Shah upon Mssr. Beinner’s departure. | 10/18 |
| GCFIX | Goldman Sachs Core Fixed Income Fund | Jonathan Beinner will be retiring from Goldman Sachs on March 31, 2019. | Michael Swell will continue to manage the fund and will be joined by Ashish Shah upon Mssr. Beinner’s departure. | 10/18 |
| GGOAX | Goldman Sachs Growth Opportunities Fund | Ashley Woodruff will no longer serve as a portfolio manager for the fund. | Steven Barry will continue to manage the fund. | 10/18 |
| GSZAX | Goldman Sachs Strategic Income Fund | Jonathan Beinner will be retiring from Goldman Sachs on March 31, 2019. | Michael Swell will continue to manage the fund and will be joined by Ashish Shah upon Mssr. Beinner’s departure. | 10/18 |
| HIIDX | Harbor Diversified International All Cap Fund | Effective October 4, 2018, William MacLeod no longer serves as a portfolio manager for the fund. | Neil Ostrer, William Arah, Charles Carter, Nick Longhurst, Michael Godfrey, Robert Antsey, David Cull, Simon Somerville, Michael Nickson, and Simon Todd continue to serve as co-portfolio managers. | 10/18 |
| HIINX | Harbor International Fund | Effective October 4, 2018, William MacLeod no longer serves as a portfolio manager for the fund. | Neil Ostrer, William Arah, Charles Carter, Nick Longhurst, Michael Godfrey, David Cull, Simon Somerville, Michael Nickson, and Simon Todd continue to serve as co-portfolio managers. | 10/18 |
| DAX | Horizons DAX Germany ETF | No one, but . . . | Chang Kim, James Ong, and Nam To will join Jonathan Molchan in managing the fund. | 10/18 |
| QYLD | Horizons NASDAQ 100 Covered Call ETF | No one, but . . . | Chang Kim, James Ong, and Nam To will join Jonathan Molchan in managing the fund. | 10/18 |
| HSPX | Horizons S&P 500 Covered Call ETF | No one, but . . . | Chang Kim, James Ong, and Nam To will join Jonathan Molchan in managing the fund. | 10/18 |
| HWCAX | Hotchkis & Wiley Diversified Value Fund | Sheldon Lieberman will retire on December 31, 2018. | Patricia McKenna, George Davis, Scott McBride, and Judd Peters will continue to manage the fund. | 10/18 |
| HWLAX | Hotchkis & Wiley Large Cap Value Fund | Sheldon Lieberman will retire on December 31, 2018. | Patricia McKenna, George Davis, Scott McBride, and Judd Peters will continue to manage the fund. | 10/18 |
| BIBL | Inspire 100 ETF | Carlos Lopez, Jr. will no longer serve as a portfolio manager for the fund. | Robert Netzly and Darrell Jayroe will continue to manage the fund. | 10/18 |
| IBD | Inspire Corporate Bond Impact ETF | Carlos Lopez, Jr. will no longer serve as a portfolio manager for the fund. | Robert Netzly and Darrell Jayroe will continue to manage the fund. | 10/18 |
| BLES | Inspire Global Hope ETF | Carlos Lopez, Jr. will no longer serve as a portfolio manager for the fund. | Robert Netzly and Darrell Jayroe will continue to manage the fund. | 10/18 |
| ISMD | Inspire Small/Mid Cap Impact ETF | Carlos Lopez, Jr. will no longer serve as a portfolio manager for the fund. | Robert Netzly and Darrell Jayroe will continue to manage the fund. | 10/18 |
| JATAX | Janus Henderson Global Technology Fund | Effective December 1, 2018, all references to J. Bradley Slingerlend are deleted from the fund’s prospectuses. | Garth Yettick will join Denny Fish in managing the fund, effective December 2018. | 10/18 |
| LSHNX | Loomis Sayles High Income Fund | No one, but . . . | Brian Kennedy and Todd Vandam join Matthew Eagan and Elaine Stokes on the management team. | 10/18 |
| LMVYX | Lord Abbett Micro Cap Value Fund | Justin Maurer and Thomas Maher will no longer serve as a portfolio manager for the fund. | Eli Rabinowich and John Hardy will now manage the fund. | 10/18 |
| LRSCX | Lord Abbett Small Cap Value Fund | Justin Maurer and Thomas Maher will no longer serve as a portfolio manager for the fund. | Eli Rabinowich and John Hardy will now manage the fund. | 10/18 |
| LVOYX | Lord Abbett Value Opportunities Fund | Justin Maurer and Thomas Maher will no longer serve as a portfolio manager for the fund. | Eli Rabinowich and John Hardy will now manage the fund. | 10/18 |
| MGGNX | Mirova Global Green Bond Fund | No one, but . . . | Charles Portier joins Chris Wigley and Marc Briand in managing the fund. | 10/18 |
| Various | Natixis Sustainable Future Target Date Funds | No one, but . . . | Effective October 15, 2018 David Belloc has joined the portfolio management team of each fund. | 10/18 |
| NCOAX | Nuveen Symphony Credit Opportunities Fund | Gunther Stein will no longer serve as a portfolio manager for the fund. | Jenny Rhee will continue to manage the fund. | 10/18 |
| NFRAX | Nuveen Symphony Floating Rate Income Fund | Gunther Stein will no longer serve as a portfolio manager for the fund. | Scott Caraher will continue to manage the fund. | 10/18 |
| SEQUX | Sequoia Fund | David Poppe has announced that he plans to retire from Ruane, Cunniff & Goldfarb L.P., the fund’s investment adviser, effective December 31, 2018. As a result, Mr. Poppe will no longer serve as a co-portfolio manager of the fund. | John Harris, Arman Gokgol-Kline, Trevor Magyar and D. Chase Sheridan will continue to manage the fund. With luck, this closes a disastrous chapter in the storied history of this fund. | 10/18 |
| FPIOX | Strategic Advisers Income Opportunities Fund | No one, but . . . | Charles Sterling joins Michael Weaver, Matthew Conti, and Gregory Pappas on the management team. | 10/18 |
| FSIEX | Touchstone International Value Fund | Charles Radtke will no longer serve as a portfolio manager for the fund. | T.J. Carter and Randolph Wrighton will continue to manage the fund. | 10/18 |
| ESIYX | Wells Fargo International Bond Fund | Christopher Wightman will no longer serve as a portfolio manager for the fund. | Lauren van Biljon joins Michael Lee, Alex Perrin, and Peter Wilson on the management team. | 10/18 |
| WSIAX | Wells Fargo Strategic Income Fund | No one, but . . . | Lauren van Biljon joins Alex Perrin, Niklas Nordenfelt, Thomas Price, Scott Smith and Noah Wise on the management team. | 10/18 |
