Author Archives: Chip

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.

Manager Changes, August 2019

By Chip

Every month we track changes to the management teams of equity, alternative and balanced funds, along with a handful of fixed-income ones. Why “a handful”? Because most fixed-income funds are such sedate creatures, with little performance difference between the top quartile funds and the bottom quartile, that the changes are not consequential. Even in the realms we normally cover, the rise of management committees dilutes the significance of any individual’s departure or arrival.

This is one of the months in which the number of funds making changes is relatively large – 60 – but the number making dramatic changes is Continue reading →

Manager changes, July 2019

By Chip

Every month we track changes to the management teams of equity, alternative and balanced funds, along with a handful of fixed-income ones. Why “a handful”? Because most fixed-income funds are such sedate creatures, with little performance difference between the top quartile funds and the bottom quartile, that the changes are not consequential. Even in the realms we normally cover, the rise of management committees dilutes the significance of any individual’s departure or arrival. This is one of the months in which the number of funds making changes is large – 82 – but the number making dramatic changes is minimal. A couple funds – DWS and Mass Mutual – lost their entire management teams and a couple of funds have announced the impending retirements of long-time managers. Other than that, mostly tweaks this month. Continue reading →

Manager changes, May and June 2019

By Chip

Each month, dozens of funds report manager changes to the SEC. The vast majority of those are inconsequential: one MBA-yielding member of a 12-person management team is popped out and another is popped in. This month’s compendium covers manager changes at 122 funds. That’s a larger-than-normal report mostly because we shared only a compressed list in our June issue, which reflected the competing time demands that Chip faced as she prepared for Ireland.

This month sees few blockbuster moves, though several “A” tier managers are Continue reading →

Manager changes, April 2019

By Chip

In the course of the average month, MFO chronicles partial or complete manager changes at 60 – 80 active equity, alternative or balanced mutual funds. We rarely report on changes at passive products or “vanilla” bond funds because, in about 99% of such instances, the changes are inconsequential to the fund’s performance.

This month, changes were reported at only 30 funds – a few low which largely parallels the lull in fund liquidations which we report in our “Dustbin of History” feature. Two of those changes are attendant to the unexpected death of Patrick Flynn, of Neuberger Berman. Mr. Flynn left behind a wife and several young children, for whom we mourn and to whom we Continue reading →

Manager changes, March 2019

By Chip

It’s been a quiet but consequential month on the manager change front. While Chip tracked down changes at just 28 funds, barely one-third of what we see in many months, a couple of the changes strike me as worth following.

The unexplained departures of Messrs Cipolloni and Saylor from Berywn Income (BERIX) is a game-changer, and a fund changer. The pair had been managing the fund together for a dozen years with a distinctive Continue reading →

Manager changes, February 2019

By Chip

In most months, most manager changes are pretty much inconsequential (except to the managers themselves, I guess). This month, there are a collection of fairly epochal changes.

A star manager, Henry Ellenbogen, is leaving T. Rowe Price and T. Rowe Price New Horizons. It’s really rare for folks to leave Price and rarer still for one of their few high-profile folks to do so. No word on his next stop.

The Bond King, Bill Gross, is giving Continue reading →

Manager changes, January 2019

By Chip

There were four notable stories among the 62 sets of manager changes this month. First, the estimable Jenny Jones has announced her plans to retire from Schroder Investment Management where she’s successfully shepherded small cap portfolios for 17 years. That run capped a distinguished 38 year investing career; her departure has led Morningstar to place her funds’ Silver rating “under review.” That’s a normal and healthy development. We wish her great joy in life’s next adventure. Second, Mark Oelschlager is departing Oak Associates on short notice after a stint as co-CIO and portfolio manager. He’s also the son of the firm’s founder, lead manager and CIO, James Oelschlager. The younger Mr. Oelschlager once seemed poised to be the firm’s next leader; now he’s “pursuing other opportunities.” The response when I reached out to the firm was … uh, terse. That seems odd and potentially troubling, given the younger Mr. O’s preference for a more risk-conscious style than his senior’s. Third, Mark Vaselkiv is stepping away from managing T. Rowe Price’s high-yield funds. In general, Price manages these transitions exceptionally well. Finally, Continue reading →

Manager changes, December 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 fairly quiet month, 46 funds and ETFs saw partial or complete team changes.

Chip, who manages our manager changes database, notes that this is one of the first months she’s tracked where more women seemed to be joining management teams than departing them. The academic research is pretty unequivocal: having women Continue reading →

Manager changes, November 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, 40 funds and ETFs saw partial or complete team changes.

By far the most consequential was the announced departure of Zeke Ashton from Centaur Total Return (TILDX), a fund that he’s managed with discipline, style and success since its inception. The folks at Intrepid Capital continue thinning their management team. We reported Jayme Wiggins departure from Intrepid Endurance and Select last month, Jason Lazarus departs Capital and Income this month.  Intrepid remains among the few firms maintaining an absolute value discipline in Continue 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 Continue reading →

Manager changes

By Chip

Yikes, the world is spinning faster and faster! 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. This month, though, brought a record 105 manager changes.

By far the most consequential was  the fission of Artisan’s outstanding global value team, which has been nominated six times for Morningstar’s Continue reading →

Manager changes, July and August 2018

By Chip

We monthly report on manager changes, which most commonly is simply swapping out one member of a management team for another. Those changes are sometimes deeply consequential, and we try to highlight those, but mostly they’re marginal to the funds. This month, though, several of the changes are especially important to the folks involved. Montag & Caldwell Growth has announced the departure of Ron Canakaris after a quarter century at the helm. The BP Capital Twinline funds announced the tragic death of manager Anthony Riley. Columbia High Yield Bond manager Jennifer Ponce de Leon is Continue reading →

Manager changes, June 2018

By Chip

The revolving door slowed dramatically this month, perhaps because it’s summer and the HR people are away on vacation. In any case, we found manager changes at just 40 funds where 60-80 would be typical. That said, several of the changes are consequential. Ben Inker, head of GMO’s asset allocation team, will no longer manage Wells Fargo Asset Allocation, as they shift subadvisement from GMO to Wells Capital Management. Boniface “Buzz” Zaino, one of the senior managers at Royce, is transitioning out of active management.  Rusty Johnson is, for health reasons, stepping back from leadership of Harding, Loevner EM. We wish them all the Continue reading →

Manager Changes

By Chip

At first glance, it appears that about 61 funds saw partial or substantial manager changes this year but more than 40 other funds are masked by our designation “various” in the ticker column. It’s the total Chip uses when she encounters one manager departure that resonates across, say, 20 target date funds or a half dozen funds all calibrated to slightly different levels of risk (Isolde Very Very Conservative Fund, Isolde Very Conservative Fund, Isolde Conservative …).

The most consequential of the changes comes to Ivy Cundill Global Value (ICDAX) where the change of sub-adviser will change the Continue reading →

Manager changes

By Chip

There are an exceptional number of manager changes this month, our partial recounting here finds 72 funds with changed teams. The tally is partial because we tend to exclude vanilla bond funds and index funds from the tally, since the managers in such funds make relatively modest differences in the funds’ performance.

Two departures seem worth note. Anthony Cragg is stepping down from Wells Fargo Asia Fund Fund (WFAAX) after a Continue reading →

Manager changes, April 2018

By Chip

There were more than 57 funds that modified their management teams this month; the “more than” reflects the fact that one manager was pulled off literally uncounted Global X funds. While few of the changes are immediately consequential, several signal an impending changing of the guard. John B Walthausen, now in his 70s, has added a co-manager to the two Walthausen funds. Billy Hwan is joining Jerome L Dodson, also in his 70s, as co-manager of Parnassus Endeavor. Moving in the opposite direction, Thomas Marsico is moving to pick up responsibility for another fund, Marsico Flexible Capital, after several Continue reading →

Manager changes, February 2018

By Chip

Sixty-two funds saw partial turnover in their management teams but no high profile manager stalked off or was shown the door, and no rising star was awarded a new charge. Actually there were rather more than 62, since we don’t track boring bond funds (the value added by the third manager on a Massachusetts muni fund is modest enough that we don’t track those teams; sorry, guys) and, this month only, we’re boycotting changes in the Dreyfus funds. Frankly, Dreyfus got annoying. Their announcements show up in the SEC filings under a bunch of labels (including dozens of Dreyfus series, CitizensSelect, Advantage Funds and Strategic Funds) and were poorly written. We ended up with a headache and the decision to share the following announcement: “about a dozen Dreyfus funds shifted teams this month; if you invest with them, you might want to Continue reading →

Manager changes, January 2018

By Chip

Ahh … it’s a quiet month on the manager change front. Forty-eight funds saw partial turnover in their management teams but no high profile manager stalked off or was shown the door, and no rising star was awarded a new charge. Despite the pressure for cost containment, 11 of the funds were simply adding to the size of the management team. The month’s sole highlight occurred when Chip encountered Harding Loevner manager Ferrill Roll, declared it “feral” and began wondering about whether he might be a candidate for managing a fund in Westeros. (Note in passing: don’t succumb to the temptation, the penalties for underperforming your benchmark there involve Continue reading →

Manager changes, December 2017

By Chip

Sixty funds saw complete or partial manager changes, which is right in line with our long-term average. Most months see between 50-70 changes. Just as was the case in September, the most consequential changes are coming from the Third Avenue funds. Michael Winer, manager of Third Avenue Real Estate Value and the firm’s sole remaining star, is retiring after 20 years. His co-managers will need to step up. Just a bit later, the merger of Third Avenue International Value will Continue reading →

Manager changes, November 2017

By Chip

It’s never a good sign when the guy whose name is on the door is also the guy handed the pink slip. And yet such was the fate this month of the founder of Caldwell & Orkin Market Opportunity. Happily that wasn’t the fate of any of the other 45 funds seeing partial or total manager changes this month. Continue reading →