The 2017 rebalance of FE's Alpha Managers chart has seen a significant shake-up, with 56 new names added, including first-timers Rathbones' Carl Stick and Hermes' Jonathan Pines, while Carmignac Gestion's Edouard Carmignac and AXA IM's Nigel Thomas are among managers losing their place on the list.
Of the 56 new Alpha Managers, some 40 names have been added to the list for the first time. Apart from Stick and Pines, these also include Evenlode's Hugh Yarrow, Odey Asset Management's James Hanbury, RLAM's Henry Lowson and Xavier Hovasse of Carmignac Gestion.
The managers returning to the list include Miton's Andrew Jackson, Schroders' Kevin Murphy and Nick Kirrage, and Nick Samouilhan of Aviva Investors.
Meanwhile, Edouard Carmignac and Thomas were joined by BlackRock's Scott Thiel, Henderson's John Bennett and Fidelity's Nick Price, who all lost their Alpha Manager ratings in the shake-up. Overall, 38 managers were removed from the 2017 list.
Charles Younes, research manager at FE, said: "2016 was all about macro events and market rotations, with value managers finally coming into favour. However, mid-cap managers, who have performed so well over the last two years, suffered - Nigel Thomas best illustrates this point."
On a group level, the number of Henderson managers currently on the list has halved from ten to five, while the top spot by number of Alpha Managers has been taken by Schroders, with ten names. This is followed by Fidelity International with nine managers, while JO Hambro Capital Management and Jupiter have seven each.
The Alpha Manager ratings recognise the top 10% of UK retail fund managers on their track records going back to 2000, with extra weighting given for those with the longest track records to highlight the benefits of experience.
FE looks at a manager's ability to create risk-adjusted alpha, outperformance in both rising and falling markets, and those who consistently beat their benchmarks.
Overall, 193 managers have scooped an Alpha Rating in the annual rebalance, with those in the IA UK Smaller Companies sector leading the pack. Some 34% of managers running funds in this sector are on FE's Alpha Manager list.
Managers in other UK equity sectors have also scored highly, with 20% of the Equity Income sector and 19% of UK All Companies represented on the list.
Over half of this year's top 20 ranked FE Alpha Managers are running UK smaller companies or all-cap funds.
Mika-John Southworth, director at FE, said: "In the immediate aftermath of Brexit, many UK small- and mid-cap managers took a hit to performance, but in the UK Smaller Companies sector in particular, investors who held their nerve have been rewarded with a swift recovery.
"UK Smaller Companies is just one sector where active managers are more than justifying their fees and delivering value against the benchmark over the longer term."
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