A manager change presents one of the greater challenges in mutual fund investing. You need to figure out how important the departing manager was to the fund, how good the new manager or managers are, whether the fund's strategy will change, and if that strategy still fits with your portfolio.
To summarize, you need to figure out if the fund's competitive advantages will endure after the change. Ideally, you will have done a lot of the work in advance. You should already have an idea of how important the fund manager is and your thesis for owning the fund. If you do, the rest is a lot more manageable.
Russel Kinnel does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.