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When a Manager Change Means More of the Same

Two recent manager changes at Goldman Sachs illustrate how other factors can mitigate the disruption.

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A change at the top of a fund naturally sparks a review of a fund's Morningstar Analyst Rating. But as Morningstar's director of manager research Russ Kinnel recently noted, fund manager changes don't usually warrant a rush to sell. Upon review, a manager change may not lead to a rating change. These transitions still bear watching, though. Two recent manager changes at Goldman Sachs Asset Management are worth highlighting not because the funds are recommended--both retained Analyst Ratings of Neutral--but because they serve to illustrate how other factors can mitigate the disruption.

Sean Gallagher, CIO of GSAM's U.S. value equity team, made a manager change at  Goldman Sachs Mid Cap Value (GSMCX) last month. Longtime team member Andrew Braun, who had served as co-lead portfolio manager since 2010, was replaced in that role by Timothy Ryan, an analyst on the fund and co-lead on Goldman Sachs Real Estate (GREIX) since 2010. Ryan will run the fund alongside Dolores Bamford, who has been on the team since 2002 and a co-lead manager since 2006. This change, and the fact that the team needs to replace a materials analyst who left in 2014, factor into the fund's Morningstar Analyst Rating of Neutral.

Laura Lallos does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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