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Fund Spy

Surprise Manager Changes Keep Investors on Their Toes

Youngish manager retirement announcements make waves.

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Sometimes manager changes come out of nowhere. Recently, two fund managers under 50 retired. Who saw that coming? Chuck Myers of  Fidelity Small Cap Discovery (FSCRX) is retiring at year-end and Dave Hollond of  American Century Heritage TWHIX is retiring. We lowered the former to a Morningstar Analyst Rating of Bronze and the latter to Neutral (a new Analyst Report will be posted soon).

Why would they retire? Because they can. Successful managers running large sums of money generally pull down eight-figure salaries. If they have significant firm ownership, their net worth can grow exponentially, as evidenced by the billionaires who run money.  Back in 1999, Fidelity Fund’s (FFIDX) Beth Terrana retired at an early age.  Janus Fund's (JANSX) Jim Craig noticed and said “Hey, I could retire, couldn’t I?” and so he retired, as did a couple of other managers at a fairly young age.

Russel Kinnel does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.