The Six Biggest Manager Changes of the First Half of 2007
Thumbs up or thumbs down on the most important manager changes.
One of the trickiest things for investors to do is figure out what to do when a fund they own changes managers. There are obvious questions about whether the strategy will change and whether the new manager is as good as the old one, and it isn't always easy to find the answers.
That's why I provide capsules of the most important manager changes each month in Morningstar FundInvestor. I tell readers what happened and whether that's a good thing. (I also send out e-mail alerts on the changes to FundInvestor subscribers.) Today, I'll share some of those capsules on the most important changes so far in the first half of 2007.
First Eagle Global (SGENX) and First Eagle Overseas (SGOVX)
March 28, 2007
Charles de Vaulx is out after two years and Jean-Marie Eveillard is back in. Eveillard is 67, and he handed the reins to de Vaulx in 2004. Eveillard said he will run the fund for one year, run it for a second year with a comanager, and then be available for consultation for three more. First Eagle gave no reason for De Vaulx's departure. | Our Take: If you own one of these closed funds, you should be pleased that Eveillard was available to step in, though the abrupt nature of De Vaulx's departure is a bit disconcerting. Eveillard had a much longer track record than De Vaulx and he had remained involved in the funds. It's vital that Eveillard groom successors to take over as he steps back. I don't expect a big taxable event due to this change as Eveillard and de Vaulx had similar investing styles.
Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.