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[ KEEPING IT UP ]
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is highly likely to underperform in a
rampant value market and vice versa.
“A period of underperformance
does not mean an investor was wrong
to trust a fund manager, rather it
is an opportunity to test whether
the individual has what it takes to
cope with tough times, acting with
consistency and focus in the face of
unfavourable markets.
“Vitally though, we must avoid those
individuals who become entrenched
in views despite mounting evidence
against them and who have not
surrounded themselves with people
who can provide challenge.”
“A period of
underperformance does
not mean an investor
was wrong to trust a fund
manager, rather it is an
opportunity to test whether
the individual has what it
takes to cope with tough
times”
Difficult second album
Unfortunately, that wasn’t quite the
end of Bolton’s story and after stepping
down from Fidelity Special Situations,
he launched the Fidelity China Special
Staying power
Situations trust in April 2010.
So what is the longest that a fund
In a classic case of what can go wrong
manager has been able to maintain
when a manager changes strategy, he
their outperformance in light of all of found the lower corporate governance
these issues?
standards harder to navigate, and two
Anthony Bolton is an obvious place
of his holdings were accused of fraud.
to start. By focusing on undervalued
While Bolton eventually turned things
and out-of-favour companies, the UK’s around, with the trust beating the MSCI
original star manager made a total
China index under his tenure, four-year
return of 14,124 per cent between the
returns of 5.76 per cent disappointed
launch of Fidelity Special Situations
anyone hoping for a repeat of his magic
at the end of 1979 and the time of his
touch on Fidelity Special Situations.
departure in 2008, compared with
Bolton is not the only manager who
3,336 per cent from the MSCI United
has outperformed over a multi-decade
Kingdom index. To put it another way, period, though, with Green drawing
£1,000 invested in his fund at the start attention to Nigel Thomas, who retired
of this period would have grown to
£142,240 by the end.
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