Former star manager Philip Gibbs is to retire from fund management in October 2014 and James Clunie is to take over his Jupiter Absolute Return Fund (GB00B5129B32) with effect from 1 September. Mr Clunie joined Jupiter on 15 July 2013 and is the former manager of SWIP UK Flexible Strategy (GB00B1265J60), which we tipped while he was running the fund.
Mr Gibbs made his name running Jupiter Financial Opportunities Fund (GB0004790191) between June 1997 and June 2010. During his tenure, it produced a return of 792 per cent compared with 38 per cent for the benchmark FTSE Financials Index, making it one of the best performing open-ended retail funds over that period.
However, things did not go so well with Jupiter Absolute Return Fund, which launched in 2009. This fund is among the bottom 25 per cent of performers in the Investment Management Association's Targeted Absolute Return fund sector over one and three years, despite the fact that it is based on an offshore strategy, Jupiter Hyde Park hedge fund, which Mr Gibbs had success with.
Read more on Jupiter Absolute Return Fund's problems
"James Clunie is the industry guru in shorting (a hedge fund technique which involves taking a bet on share prices falling) and has a fantastic track record running absolute return strategies," says Darius McDermott, managing director of Chelsea Financial Services. "We had rated the SWIP UK Flexible Strategy fund, which he ran, a buy and were about to add it to our selection list when it was announced he would be leaving SWIP and joining Jupiter. Given that the Jupiter Absolute Return fund was struggling, it made sense that he would be put in charge at some point."
Mr Gibbs will continue as manager of Jupiter Second Split Investment Trust (JSSZ) until 31 October 2014 when it is due to wind up.
Mr Clunie has worked in asset management for 24 years and as manager of the equity long/short SWIP UK Flexible Strategy Fund, delivered risk adjusted returns of 23.1 per cent during the three years to 22 April 2013 against 2.4 per cent for the fund's benchmark, three-month LIBOR. While at SWIP, he also managed UK long-only funds, was an investment director covering equities and also a member of SWIP's investment risk committee.
He has also been head of global equities at Aberdeen Asset Management.
Annual total returns (%)
| 2010 | 2011 | 2012 | 30/06/2013 | Total expense ratio (%) | |
| Jupiter Absolute Return Fund | 1.48 | -0.15 | 0.46 | 0.19 | 1.47 |
| Scottish Widows Investment Partnership UK Flexible Strategy A GBP Acc | 7.33 | 3.4 | 10.83 | 5.41 | 1.69 |
Source: Morningstar as at 30 June 2013
