Jupiter AM appoints Patrick Harrington

Patrick Harrington is returning to the retail fund management industry and joining Jupiter Asset Management. He will take over the firm’s £130m Undervalued Assets fund from Edward Bonham Carter.

The move means Bonham Carter will no longer run money for Jupiter, but will continue in his role as chief executive and chief investment officer. He steps down from the fund at the end of March.

For the past three years, Harrington has worked at OLIM, an institutional boutique, after leaving Henderson Global Investors where he ran the UK Equity Income and UK Extra Income funds.

He was also well-known for managing funds at M&G, including the Dividend fund, Charifund, Extra Income and High Yield Distribution.

Although Harrington is an equity income manager and the Undervalued Assets fund does not generate a yield, Jupiter says he was taken on because his value style is similar to that of Bonham Carter’s.

The main difference in their investment approaches is Harrington’s preference for a concentrated portfolio and Bonham Carter’s tendency to maintain a long stock list.

The group confirmed that over the coming months Harrington will cut the 75-stock portfolio down to between 30 and 40 holdings. He has a buy-and-hold style, which sees him retain stocks for between three and five years.

Between 2002 and 2004 Harrington ran Henderson UK Equity Income, which consistently beat its peer group under his management.

During his last role at OLIM, Harrington ran the UK Equity Trust, which fell 4.07% between September 1, 2005 and January 1, 2009, against the sector’s average fall of 9.75%, ranking it 21 out of 78 funds in the peer group.
Over the year to March 2, 2009, Jupiter Undervalued Assets fell 35.8% compared with the UK All Companies sector average fall of 33%.

During a period of underperformance on the fund in July 2008, Fund Strategy reported that Bonham Carter had threatened to quit if he failed to turn around performance within a year.

Old Broad Street Research (OBSR) has suspended the A-rating on the Undervalued Assets fund following the announcement.