Following the duo handing in their resignation yesterday, shares in the AIM-listed asset manager Miton Group fell 28% this morning; down from 34.7p to 25p. The duo run close to a third of the firm’s £3bn AUM.
A person familiar with the situation said the pair have agreed to join Polar Capital.
Godber, joint manager of Miton’s £869m UK Value Opportunities fund, has a one-year notice period, while Hamilton has 6 months.
Gervais Williams, managing director at Miton Group, said Miton does not know who will be replacing them yet, as the firm only found out yesterday.
“We have been holders of the fund for 18 months, and we’re very surprised at the announcement, said Gavin Haynes, managing director of Whitechurch Securities. “The two managers’ notice periods are very long, but it is obviously disruptive and puts a cloud over the holding.”
Godber and Hamilton’s Miton UK Value Opportunities fund, launched in March 2013, helped increase the firm’s assets under management by 36% to £2.7bn in 2015. Miton has reported pre-tax profit of £2.1 in 2015 compared to losses of £5.5m in 2014.
The team joined Miton in 2012 from Matterley, the fund management division of Charles Stanley which Godber co-founded with Henry Dixon in 2008.
Darius McDermott, managing director of Chelsea Financial Services, said: “George and Georgina are a great double act who have worked together for about nine years now, first at Matterley and then at Miton. We’ve tipped them as up and coming managers in the past and it’s not surprising that they have been of interest to other companies.”
“They have long notice periods though – especially George – so while the news is pretty big for investors in the fund, there is no need to rush and sell. They will continue to manage the fund for at least six months and will only leave earlier if Miton are successful in replacing them sooner. We have downgraded the fund to a generic ‘hold’ rating.”
A statement from Miton said: “Miton’s focus continues to be on looking after the best interests of its clients as it recruits replacement portfolio managers.”
