Old Mutual sacks Jupiter and Newton from Best Ideas mandates

Old Mutual Global Investors’ (OMGI) Lee Freeman-Shor has rung the changes on his €279.1m European Best Ideas fund, removing Jupiter’s Cedric de Fonclare and Newton’s Rajesh Shant from their 10-stock mandates.

Mr Freeman-Shor has instead brought in Nicolas Walewski, founder of Alken Asset Management, to run a section of the portfolio.

“Nicolas Walewski joined having successfully managed a paper portfolio for me for more than a year,” Mr Freeman-Shor said.

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“During this time he proved himself to have considerable skill at generating high and repeatable alpha from his 10 best ideas by way of proprietary trading analysis and meetings.

“I see adding Nicolas to the portfolio as a very attractive option given his differentiated approach to value investing [relative to] the other value-oriented managers in the team.”

He added that Mr de Fonclare’s mandate had been removed because of “an undesirable bias to quality growth names” following other additions to the fund’s line-up of managers.

Mr Shant, meanwhile, was removed “because his best ideas tended to be names that other managers also held, which meant that his unique impact on the fund was being diluted”, Mr Freeman-Shor said.

However, he said both Mr de Fonclare and Mr Shant had added outperformance since being appointed to the fund.

The Old Mutual European Best Ideas fund now consists of nine managers running portfolios of 10 stocks each, including BlackRock’s Richard Plackett, Liontrust’s James Inglis-Jones and Odey Asset Management founder Crispin Odey.

In the three years to September 10 the fund gained 38.5 per cent, ranking in the third quartile of the IMA Europe including UK sector, according to FE Analytics.