Giles Hargreave is to step back as a named manager on the three UK small-cap equity funds he managers at Marlborough Fund Managers.
Hargreave is currently a co-manager on Marlborough Special Situations, Marlborough UK Micro-Cap Growth and Marlborough Nano-Cap Growth.
But in a press release on Thursday morning, Marlborough said from the start of 2021 co-managers Eustace Santa Barbara and Guy Feld will be the named co-managers of all three funds, while Hargreave steps back.
Hargreave said in a statement: “Working with a large and talented team investing in some of the UK’s most exciting and innovative businesses is a great privilege and I look forward to continuing to do so. We have a very strong and collaborative team, united by one investment philosophy, and we are committed to our aim of seeing the funds continue to go from strength to strength.”
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‘This will probably still mean some money leaves the funds’
Fairview Investments consultant Ben Yearsley said he hadn’t bought Hargreave’s funds for a while as he had been concerned about his retirement.
“It was going to happen at some point especially as the business was bought out a few years ago. They’ve given pretty decent warning but this will probably still mean some money leaves the funds – not ideal in small and micro cap,” Yearsley said.
But Fundcalibre managing director Darius McDermott said the Marlborough Special Situations and UK Micro-Cap Growth funds would maintain their “elite” rating with the research house.
“The team members have worked together for many years and both of Giles’ co-managers, Eustace Santa Barbara and Guy Feld, have contributed significantly to the performance of the funds over their tenure,” McDermott said. “There will be total continuity for investors in terms of investment process, and we have the utmost confidence in their skills and that they will co-manage the funds successfully together in the future.”
He described Hargreave as the “best UK small-cap manager of the 21st century”, pointing out the Marlborough Special Situations fund has returned 2,548.73% compared with 451.12% for its average peer in the Investment Association UK Smaller Companies sector.
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Succession planning arrangements
Santa Barbara is already the co-manager on the Special Situations fund while Feld is the co-manager on the UK Micro-Cap Growth and Nan-Cap Growth funds.
Marlborough said Hargreave would continue to play a “central role” in the running of three funds and would lead weekly investment meetings.
The investment process would remain the same on the trio of funds.
“The success of the funds over many years has been down to a team-based approach,” said Marlborough joint managing director Wayne Green. “Giles has assembled and mentored a first-class team of experienced fund managers who are all strong believers in the investment process and philosophy that have made these funds so popular with investors.
“Giles will continue to work closely with the fund managers and his experience and expertise will continue to make an important contribution to the success of the funds.”
