Manager Changes - March 2007 Multi-Manager = Star Manager?
The departure of multi-manager heads Gary Potter and Robert Burdett is yet another body blow to the increasingly wounded animal that is Credit Suisse. This damage may well be terminal for the group's UK retail presence, with Burdett and Potter just as hard to replace, in their own way, as Bill Mott on the income side.
The fact these are multi-managers rather than UK equity, for example, is an interesting indication of how this area of the market has grown up in the UK.
As ever, the group said it will look to bolster the team in due course, either from the global desk or an external replacement, but this is unlikely to stop outflows of money attracted to the funds by the Potter/Burdett axis. Whether it goes to them at their new employer or one of the other players in the market is another question but the majority of it is unlikely to remain at Credit Suisse in the long term.
The problem with this is that multi-manager is broadly sold and marketed as a lower-risk alternative to buying single-manager funds and yet is actually prone to many of the same issues in the UK. In fact, with Potter and Burdett, Jupiter's John Chatfeild-Roberts, Gartmore's Bambos Hambi, F&C's Richard Philbin and so on, there is just as strong a star culture in the multi-manager world as in the single manager.
This is obviously fine as far as it goes, apart from the fact several groups have claimed buying multi-manager effectively acts as insulation against increasing manager turnover in the market.
Kelly Prior, Anthony Willis & Paul Green
Credit Suisse multi-managers Kelly Prior, Anthony Willis and Paul Green are to join former colleagues Gary Potter and Robert Burdett at Thames River. The team, which is set to join Thames River in mid April, was left in charge of Credit Suisse's 17-fund multi-manager franchise when Potter and Burdett announced their departures earlier this month.
Potter and Burdett are not due to take up their new positions until August but in the interim period Prior, Willis and Green will assist investment director Michael Warren, in looking at product development. No funds will be launched until the whole team is in place.
Credit Suisse Multi-Manager
Credit Suisse Asset Management has moved to shore up its multi-manager arm with the appointment of Graham Duce as head of its UK multi-manager platform.
Duce had previously been responsible for developing CSAM Multi Asset Class Solutions' relationship with the private bank across the UK. His appointment follows the resignations of flagship multi-managers Robert Burdett and Gary Potter at the beginning of the month.
Duce will be responsible for managing the funds, as well as developing and implementing the business strategy for CSAM's multi-manager service. He will report to Ed Robertiello, head of research and selection within CSAM's Funds and Alternative Solutions unit.
The firm has also appointed Rob Bowie, who has over 12 years experience as a multi-manager portfolio manager. Previously, Bowie helped run the Artemis multi-manager business in the UK, which was acquired by Credit Suisse in 2005.
Rob Burdett & Gary Potter
Former Credit Suisse Asset Management (CSAM) flagship fund managers Rob Burdett and Gary Potter are set to join Thames River Capital, the boutique investment house, in August.
The pair, who were managing directors and co-heads of multi-manager at CSAM, have a long relationship with Thames River, investing in the firm's products across their fund of funds range.
Burdett and Potter, both currently on gardening leave, have worked together for over 10 years, and on joining Thames River are likely to launch around six vehicles, with onshore and offshore versions available. In terms of launches, it is likely that versions of the Credit Suisse Constellation, Cautious Managed and Equity Managed funds will be the first products. These will be joined by a further three core portfolios, likely to include an ethical fund, as well as a number of satellite vehicles.
Thames River Capital was formed nearly a decade ago by a group of investment professionals and Charlie Porter, chief executive officer of Thames River, says his pursuit of Potter and Burdett has paid off and confirmed they will work with its long-only products.
CSAM has confirmed Scott Spencer and Kelly Prior, who both worked on the multi-manager teams under Potter and Burdett, will run the multi-manager range in the short term under the direction of head of manager selection, Ed Robertiello. CSAM has vowed its multi-manager arm will not suffer despite the resignations of Potter and Burdett.
The resignations have come as a blow to CSAM which, in the last 18 months, has also lost Lee Harrison and Errol Francis from its income division. This is on top of Bill Mott's recent exit.
Coupland Cardiff Asia Pacific
Former JPMorgan manager Jonathan Dobson has joined his ex-colleagues at Coupland Cardiff to launch an Asia Pacific vehicle with a Japanese element.
Dobson left his post as co-manager of the group's Japanese Investment Trust last February, joining Richard Cardiff and Angus Coupland's firm in January. Cardiff and Coupland set up the hedge fund business two years ago with Charlie Dutton, formerly of JF Securities, to focus on Asian equities.
Cardiff was head of marketing at JF and also chief executive officer of the JPMorgan Asset Management UK business. Coupland was a senior regional fund manager for JPMorgan Fleming based in Hong Kong.
Coupland Cardiff's first fund launched in July 2005 in the form of an Asian equity long-short vehicle and the group is planning a Dublin-listed OEIC for April.
Cardiff said the fund will be split in two, with Dutton running the Asian portion and Dobson the Japanese element.
Smith & Williamson Nucleus Smaller Securities
Smith & Williamson has renamed its Nucleus Smaller Securities offering as Special Situations and appointed Mark Boucher as lead manager. As a result, the fund has transferred from the UK Smaller Companies sector to UK All Companies.
Boucher and Rupert Fleming took over the fund from Simon Warren on 13th December 2006. The two managers have been restructuring the offering since then, buying and selling over £3m worth of holdings and changing the bias of the fund from small caps to mid-size companies.
According to Fleming, the benchmark is now the FTSE All-Share rather than the Hoare Govett Small-Cap Extended (excluding investment trusts) Capital index, reflecting a move from an average market cap of £250m to over £400m at the end of January.
The reorganisation saw the Special Situations portfolio sell 25 holdings worth £3.1m, 18 of which were on AIM. It bought 21 new holdings worth £3.2m, of which only eight are AIM listed. The number of holdings has fallen, from 84 to 80.
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