Lindsell Train co-founder Michael Lindsell is among the swathe of managers who have been dethroned in FE’s latest Alpha Manager rebalance.
In total 52 managers were stripped of their title and ejected from the list, which honours the top 10% of UK retail-facing managers based on performance throughout their entire career.
This represented a change of more than 25% of the 200-strong list, which Charles Younes, research manager at FE Investments, called a “considerable churn” and reflective of the style rotational shifts that rocked markets toward the end of 2021.
Lindsell culled from Alpha Managers
Lindsell was among the high-profile managers to lose their status. His ¥43.6bn (£278.3m) Lindsell Train Japanese Equity fund has lost 18.5% over the last year, three times higher than the average IA Japan fund at 6.6%, according to Trustnet. On a three year-view it is down 4.6%, while the sector has risen 22.1%.
The £7.1bn Lindsell Train Global Equity fund, which he co-manages with Nick Train, has not fared much better recently and is currently one of the worst performers in the IA Global sector over one and three years. However, it is still top quartile over five years, having returned 74.6% versus peers’ 58%.
Fellow Japanese equity stalwart Hideo Shiozumi was another casualty of the latest rebalance, as were Jupiter Financial Opportunities manager Guy de Blonay and Ardevora’s Jeremy Lang.
Several heavy hitters, including Giles Hargreave and Charles Plowden, were made redundant because they have retired from fund management.
Abby Glennie and Rosemary Banyard among new high-profile female entrants
The outgoing crop of Alpha managers were replaced by 52 new entrants, keeping the list of overachievers constant at 200.
Premier Miton European Opportunities duo Carlos Moreno and Thomas Brown achieved ‘Alpha’ status this time around, as did Marlborough’s Eustace Santa Barbara and Montanaro Better World co-manager Mark Rogers.
Several high-profile female managers also made the grade, following stellar performance in 2021.
Abby Glennie, who gained the Alpha Manager title, generated returns of 23% via her Abrdn Smaller Companies Income trust last year.
Downing’s Rosemary Banyard and Baillie Gifford Positive Change managers Kate Fox and Kirsty Gibson were also recognised for their achievements.
Baillie Gifford managers shine despite value rotation
Despite Baillie Gifford’s preferred growth style falling out of favour toward the end of the year, it had the highest number of alpha managers out of any fund group at 13.
Lee Qian, who runs the Positive Change and Keystone Investment Trust with Fox and Gibson, was also awarded Alpha Manager status, as were European equities duo Stephen Paice and Moritz Sitte.
However, Baillie Gifford China manager Sophie Earnshaw lost her title in the latest reshuffle.
“Although they have had a tumultuous year, the performance of Baillie Gifford’s managers has been impressive over the long term and has led to the highest number of its managers per group making the list,” Younes said.
“This is because although they have suffered from the market rotations mentioned earlier, structurally they remain sound and have not altered their investment approach, being able to generate alpha returns.”
Fidelity was behind Baillie Gifford with 10 alpha managers, followed by Comgest with eight. Jupiter and Premier Miton were tied with six star performers apiece , while Abrdn and Blackrock had five.
