November 2018 IssueLong scroll reading

Manager changes, October 2018

By Chip

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

 

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About Chip

Cheryl Welsch, MBA (Western Governors). Cofounder, technical director. Chip is the lead developer for information technology, virtual reality, and business programs at Eastern Iowa Community Colleges. Chip is responsible for making the Observer actually happen; in cooperation with our graphic designer, she also controls how the Observer looks and acts. She also writes our monthly Manager Changes feature and whittles away at the typofest in our drafts.