Tuesday 9 December 2008

New Star has faded and John Duffield is leaving.

British investment manager New Star has fallen under the control of some major banks and its founder John Duffield is leaving. It operated a culture of star investment fund managers, some of whome found it difficult to outperform. Investment conditions have been tough for active stock pickers.
A columnist in MoneyMarketing jokes that he always wrote articles about New Star under the fear of receiving writs from the company's lawyers.
Another columnist says New Star's troubles have affected the fund management industry as a whole.
Meanwhile, the Bath-based firm Fidelius offers advice from simple mortgages to investment planning. It approaches the requirements of the client with a completely open mind.
Meanwhile, Nic Cicutti of Money Marketing, has written a perceptive article about the New Star implosion. For instance, he notes that New Star markets over 40 funds
compared with around twelve in 2002. Fashion funds reflected latest fads for investors. There was also no rigorous, disciplined approach when the stock market started to collapse. Also, good managers will have periods, when they are unable to outperform due to being in the wrong sector or having the wrong investment style.

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