Marlborough’s Hargreave steps back after 22 years and 2,550% return

Veteran fund manager Giles Hargreave will relinquish his duties as co-manager of Marlborough Fund Managers’ UK small-cap range from January next year.

The firm today announced the changes are to be made as part of the long-term succession planning strategy for its £1.1million Special Situations, £990million UK Micro-Cap and £168million Nano-Cap Growth funds.

Hargreave is one of the UK’s longest-standing managers having run the Special Situations fund since 1998. 

Over his tenure, it has been the best-performing fund in its sector, returning 2,550 per cent compared with its IA UK Smaller Companies average return of 450 per cent, according to FE Analytics. 

Eustace Santa Barbara and Guy Feld, who currently serve as co-manager alongside Hargreave on the Special Situations and UK Micro-Cap and Nano-Cap Growth funds respectively, will be named co-managers on all three funds. 

The firm said he will continue to lead weekly investment meetings and work closely with Santa Barbara and Feld. 

But though Hargreave will remain in a central role in the running of the three funds, from 1 January 2021 he will no longer be a named co-manager. 

All three funds will retain their current investment process and philosophy and the managers will continue to work with the support of its investment team. 

Commenting on the news, Hargreave said: ‘Working with a large and talented team investing in some of the UK’s most exciting and innovative businesses is a great privilege and I look forward to continuing to do so. 

‘We have a very strong and collaborative team, united by one investment philosophy, and we are committed to our aim of seeing the funds continue to go from strength to strength.’

Wayne Green, joint managing director of Marlborough Fund Managers, added: ‘The success of the funds over many years has been down to a team-based approach. 

‘Giles has assembled and mentored a first-class team of experienced fund managers who are all strong believers in the investment process and philosophy that have made these funds so popular with investors.’   

FundCalibre’s Darius McDermott said: ‘Giles has been an outstanding UK smaller companies fund manager. Thankfully for his investors, during that time he has also built an exceptionally strong team. 

‘This is excellent succession planning that has been in the making for some years and investors are being given plenty of advance warning, as Giles will remain co-manager on the Marlborough small-cap funds until January 2021. Even then, he will remain closely involved. 

‘The team members have worked together for many years and both of Giles’ co-managers, Eustace Santa Barbara and Guy Feld, have contributed significantly to the performance of the funds over their tenure.’

‘There will be total continuity for investors in terms of investment process, and we have the utmost confidence in their skills and that they will co-manage the funds successfully together in the future.’ 

Ben Yearsley, of Shore Financial Planning, added: ‘Giles has to go down as one of the UK’s greatest investors. He has a phenomenal long-term record of investing in smaller companies in many different market environments.

‘I had been expecting a change since the takeover of Hargreave Hale by Canaccord Genuity Group in 2017. They’ve obviously had co-managers on the funds for a number of years now and a big team has built up. 

‘This won’t stop money exiting the fund though, which is never great though. 

‘For investors there is no need to panic and exit the funds but if they are looking for an alternative then the Montanaro UK Smaller Companies trust is one to look at.’