Fundsmith's Terry Smith (pictured), Fidelity's Anthony Srom and Jupiter's Richard Watts have joined FE fundinfo's FE Alpha Manager Hall of Fame, which recognises managers that have been rated as ‘Alpha Managers' consistently for at least seven years.
In order to gain an Alpha rating, managers are rated based on their risk-adjusted alpha, their outperformance in both bull and bear markets, and the consistency of their outperformance relative to their benchmarks. They are ranked based on their track records since 2000, and managers with a longer history of managing money are awarded an extra weighting to highlight the benefits of their experience, according to the firm.
The FE Alpha Manager Hall of Fame now houses 51 managers in total, ten of which have remained on the list without interruption for at least seven years. These managers are First Sentier Investors' Martin Lau, SLA's Harry Nimmo, Slater Investments' Mark Slater, M&G's Richard Woolnough, Marlborough's Giles Hargreave, Fidelity's Leigh Himsworth, Jupiter's John Chatfeild-Roberts and Daniel Nickols, Columbia Threadneedle's David Dudding and CRUX Asset Management's Richard Pease.
There is no doubt that throughout the global pandemic, the very best active fund managers have demonstrated their value time and again."
Due to "unprecedented market conditions", ten active managers lost their place in the Hall of Fame, including Tellworth's Mark Barnett who left Invesco earlier this year after a prolonged period of underperformance.
Charles Younes, research manager at FE fundinfo, said: "There is no doubt that throughout the global pandemic, the very best active fund managers have demonstrated their value time and again.
"Firstly, during the crash in February and March last year, by navigating the worst of the downside and then secondly, by spotting the opportunities in the recovery. As we encounter further periods of volatility the managers on our Hall of Fame will no doubt continue to demonstrate their expertise and deep market understanding to ensure their funds perform well."
He added that the FE Alpha Managers have for the most part had long careers and have therefore "already experienced the events we saw in the last 12 months before".
"Hall of Fame is a great opportunity to recognise these managers who have consistently outperformed their benchmarks throughout the unprecedented market conditions and indeed their careers," Younes said.
First published by our sister title Investment Week