European equities specialist SW Mitchell saw operating profits almost double in the year ended 31 March 2018, just ahead of it losing two sub-advised mandates it ran for St James’s Place.
Profits increased to £5.3m from £2.7m in the previous year, according to a filing with Companies House. Founder and chief executive Stuart Mitchell enjoyed a windfall of £4m on the positive results, up from £2.1m in the previous year.
The financial statements pre-date SJP’s decision in May to dump Mitchell as manager on the £102.4m Continental Europe and co-manager on the £651.12m Greater European Progressive mandates, which he had run since 2007 and 2009 respectively. Investec Asset Management’s Ken Hsia has taken over management on both funds.
SJP does not disclose costs paid to managers of its segregated mandates, but the size of other SW Mitchell third-party funds indicate the boutique is likely to take a hit from lost fee revenue in its next financial statements.
SW Mitchell also runs the €106.67m Small Cap European and €166.47m European funds, while its website indicates it runs additional segregated mandates for institutional investors and family offices.
Mitchell founded the London-based boutique in 2005 and controls more than 75% of assets, according to Companies House.
Headcount at the firm was 11 for the last financial year, unchanged from the previous year, with total staff costs increasing from £1.1m to £1.3m over the period.
Rival European equities boutique Crux Asset Management revealed profits of £3.3m earlier this year on the back of higher turnover totalling £14.2m.
