His track record is good but not all managers who move succeed in a different environment and that is for individual investors to decide on.
The US market is notoriously difficult for active managers to outperform; the argument is that it is highly efficient and therefore investors would be better to hold a fund that tracks the index rather than paying for active management.
For some time we have supported the Threadneedle American Smaller Companies Fund run by Cormac Weldon. When Cormac left Threadneedle we were concerned that the fund would not be able to continue to deliver in the same style as originally established. In this update we want to consider the new US Funds from Artemis where Cormac has gone.
In the meeting we had with Cormac it was clear that the hole left by his departure is deep but one we are sure Threadneedle can fill! Cormac set in place the process for his US Funds at Threadneedle and recruited much of the team which ran that process with him. When he left he took the key members of the team with him.
Therefore, although there is some argument that all he is doing is replicating what was at Threadneedle (which to some extent is true) there are some subtle differences. One of the key reasons for the move was to return to being an investor, at Threadneedle his position meant that increasingly he was being taken away from what he enjoyed and did best. The second subtle change is the size of the fund which will be small to start with and therefore gives him more opportunities which he was finding increasingly harder to do at Threadneedle.
The review will look at some of the key components of his style. Without a performance track record under Artemis investors will need to judge whether the performance at Threadneedle can continue without the team, and whether the team can not only replicate their previous success but improve on it.