In a year where extreme volatility has tested the markets and challenged returns, three of the UK’s best performing active fund managers have been added to the 2021 Alpha Manager ‘Hall of Fame’ list.
Richard Watts (Jupiter), Anthony Srom (Fidelity) and Terry Smith (Fundsmith) have joined the list which is compiled each year by fund data and technology company, FE fundinfo. The Hall of Fame, which recognises those managers who have been ‘Alpha-rated’ consistently over a period of seven years, now stands at 51 managers in total.
To gain an Alpha rating, fund managers are ranked according to their track records since 2000, with extra weighting applied to those with longer track records to highlight the benefits of their experience in delivering strong performance in a range of market conditions. The rating is based on three components: risk-adjusted alpha; consistency of outperformance versus their benchmark; and outperformance in both up and down markets.
With consistency of performance proving exceedingly difficult to maintain throughout the course of the Covid-19 pandemic, 10 fund managers have also been recognised for their appearance in the Hall of Fame without interruption throughout the last seven years. These were Martin Lau (First Sentier Investors), Harry Nimmo, (SL Aberdeen), Mark Slater (Slater Investments), Richard Woolnough (M&G), Giles Hargreave (Marlborough Fund Managers), Leigh Himsworth (Fidelity), John Chatfeild-Roberts (Jupiter), Daniel Nickols (Jupiter), David Dudding (Columbia Threadneedle) and Richard Pease (CRUX Asset Management).
Charles Younes, Research Manager at FE fundinfo, says: “There’s no doubt that throughout the global pandemic, the very best active fund managers have demonstrated their value time and again. Firstly, during the crash in February and March last year, by navigating the worst of the downside and then secondly, by spotting the opportunities in the recovery. As we encounter further periods of volatility the managers on our Hall of Fame will no doubt continue to demonstrate their expertise and deep market understanding to ensure their funds perform well. The Alpha Managers have mostly had long careers and have already experienced the events we saw in the last 12 months before. The Hall of Fame therefore is a great opportunity to recognise these managers who have consistently outperformed their benchmarks throughout the unprecedented market conditions and indeed their careers.”
Given these unprecedented market conditions, the Hall of Fame also said farewell to 10 active fund managers, following the inconsistent performances of their managed funds. Among them was Mark Barnett at Tellworth, who left Invesco earlier in the year after extended periods of underperformance.