Lazard US Equity Concentrated Open LEVOX

Lazard announced that Lazard US Equity Concentrated lead manager Chris Blake has stepped down from the strategy but will remain at the firm through June 2024. Sean Gallagher will replace him as lead manager, and comanagers Martin Flood and Jay Levy will support him. The strategy’s Morningstar Medalist Rating is Under Review. Blake’s departure comes amid a tough stretch for the strategy. Blake had managed the strategy in separate accounts since 2003 and built up a decent track record before he took over the mutual fund version at the end of May 2012. Since then, performance has been underwhelming. Through March 2024, the institutional shares’ 12.0% annualized return trailed 88% of its large-blend Morningstar Category peers. Poor stock selection weighed on performance over the period, particularly in crucial areas such as technology and healthcare. To make matters worse, the mutual fund shed about $1.1 billion of assets in 2023, which brought its total assets down to around $140 million as of March 2024. Gallagher’s roughly 20 years of industry experience is a plus, but he is relatively new to the firm and it's unclear what changes he will implement when he takes over. After joining Lazard in December 2023, Gallagher became manager of Lazard US Small Cap Equity Select LZSCX, which he will continue managing in addition to this strategy. It’s expected that Gallagher will implement a different approach from Blake; the portfolio is expected to change as well.