Back in January 2007 Korhonen inherited the global element of Anthony Bolton’s legendary Special Situation’s Fund after it was split in two. Meanwhile, Sanjeev Shah took over the UK Equity element.
Bolton’s legacy was worth £6bn in total and was divided approximately down the middle to give Korhonen and Shah £3bn each.
Since 2007, Korhonen has eroded his fund to £1.37bn, while Shah’s stands at £2.2bn, as at the end of October.
Over three months, six months, one year and five years the Global Special Situations fund is ranked in the fourth quartile and over three years is ranked in the third quartile.
The fund has lagged the sector over all these time periods, apart from three years, according to its latest factsheet.
Looking at discrete performance, only over one 12-month period between November 2006 and November 2011 did the fund manage to achieve top quartile performance.
Korhonen’s Global Special Situations Fund has no OBSR rating and a two star quantitative rating from Morningstar.
Podger to the rescue?
His replacement, Podger who will start in March, was head of global equities at Threadneedle and managed the firm’s Global Select Fund and Global Extended Alpha Fund.
The Threadneedle Global Select Fund was launched in August 1997 and has been run by Podger since 2003.
It has a four star Morningstar rating and an AA OBSR rating and over one year, five years and ten years is ranked in the second quartile.
Over three months and three years, however, it is ranked in the third quartile.
Shanjeev Shah remains manager of Fidelity Special Situations for the time being, but given his underperformance over three months, six months, one year, three years and five years, how long will he be given to turn the fund around?
His fund is ranked fourth quartile across all those time periods apart from five years (ranked third quartile) but maintains a four star Morningstar rating and AA rating from OBSR.
Threadneedle rings the changes
On the Threadneedle side, William Davies has been made head of global equities to replace Podger and will run the Global Select Fund. He has headed the firm’s European equities team since 1999 and is deputy head of equities for the company as a whole as well.
Neil Robson who joined Threadneedle’s global equities team from Martin Currie in October will take over the Global Extended Alpha Fund and Global Focus Sicav Podger formerly managed.
Philip Dicken, who has been in charge of the smaller companies strategy within the European team, will take on the role of head of European equities.
