Artemis Investment Management has revealed that Derek Stuart (pictured), one of its founders, is to step back from co-managing the £500.7m UK Special Situations Fund at the end of next year, which he has run since inception in 2000.
Instead, he will concentrate on chairing the Artemis Charitable Foundation.
The second quartile UK Special Situations fund has been in the red over the past year, and is down 10.8% against its benchmark, the IA UK All Companies, which fell 7.4% over the past 12 months, according to figures from Trustnet.
However, over three years it is up 17.6% while its benchmark only managed to deliver 5.9%.
New joiner from Aviva
Andy Gray has been co-manager of the special situations fund since 2014. He will be joined by Henry Flockhart who moves over from Aviva Investors on 25 July.
Flockhart has managed the Aviva Investors UK Equity Unconstrained fund since September 2018.Before that, he was at Standard Life and managed the SLI UK Equity High Alpha fund from January 2013.
Stuart said: “It was a great privilege to help found Artemis and to have managed the fund for, by the time I stand aside, 23 years. I look forward to continuing to work with Andy for the next 18 months as we welcome Henry to the team.
“I know that when I do hand over, I will be leaving the fund in Andy’s and Henry’s very capable hands; and I’m sure that their focus will remain on meeting clients’ needs. I’m looking forward to chairing the Artemis Charitable Foundation and helping to ensure that all its good work continues.”
Artemis’ senior partner, Mark Murray, added: “Derek was one of Artemis’ four co-founders in 1997. When he steps aside from fund management at the end of next year, he will do so with our recognition of his enormous contribution to making Artemis what it is today. He has our enduring thanks; and we’re delighted that he’ll remain a partner as he chairs our charitable foundation.
“The highly respected fund that Derek built up from nothing has in Andy and Henry very able successors. Andy’s and Henry’s approaches are highly compatible; and under their management we fully expect the fund to maintain its record of long-term outperformance for its investors.”