As MFO reports, Meridian Equity Income Fund is changing managers. Minyoung Sohn is taking the reins. He apparently earned a good but short record [3 years] with Janus Growth and Income.
I’ve been invested in this small Meridian fund since the day it opened. My investment has more than doubled, and I liked the conservative value approach of its experienced managers [the same people who manage Meridian Contrarian Fund, formerly Meridian Value Fund].
I’ve experienced many manager changes over the years [always an unsettling experience if you had confidence in the founding managers. The most distressing was when Michael Price sold his Mutual Series funds to Franklin Templeton].
The first result of this change at Meridian Equity Income is that the fund almost immediately issued a large capital gain. This occurred because the new manager sold a large number of holdings so he could invest in stocks that meet his different investing style. I suspect the distribution was made early [before December] to prevent existing shareholders from selling the fund in an effort to avoid the large capital gain distribution. [Fewer shareholders to share the taxable gain obligation] [Last year, Meridian Growth Fund also sold a large portion of its holdings as its new managers implemented their investment style].
The second result of this change of managers is that my money will now be invested in a more growth than value style.
I plan to keep my money in this small fund and give the new manager an opportunity to impress me. But these manager changes may be an argument in favor of investing in ETFs.
Does anyone have any thoughts about Minyoung Sohn?
Comments
Regards,
Ted
http://meridianfund.com/news/arrowpoint-partners-announces-minyoung-sohn-as-portfolio-manager/
First thing I notice is that Meridian is getting away from a team management format with this fund and Mr. Sohn will be the sole manager.
Secondly, the history of Mr. Sohn stops after 2007. What happened to him between then and now?
I would be cautious about this fund.