The manager had been head of UK equities at Old Mutual Global Investors until the arrival of Richard Buxton, who moved over from Schroders in June 2013. Bradbury now plans to depart the firm at the end of 2014.
He is planning to focus on personal interests outside of the industry.
Bradbury had managed the Old Mutual UK Mid Cap fund from its launch in February 2002 until April 2008. Over this period the fund returned more than 170 per cent compared to a sector average of 51.8 per cent. The FTSE All Share gained 123.81 per cent over the same period.
Performance of fund, sector and benchmark Feb 2002 to Apr 2008
Source: FE Analytics
Mark Dampier (pictured), head of research at Hargreaves Lansdown, says Bradbury’s exit will be a loss to Old Mutual but that he won’t be selling out of any Old Mutual funds as a result.
“It is really sad that he is leaving the industry. He was one of the best fund managers I have ever met. The fact that he didn’t want to run retail money anymore – apart from a very small hedge fund - was a great shame,” he said.“The industry needs its heroes and he was a quiet and modest man but in my view one of the top three fund managers in the industry. He’d be up there with Neil Woodford if he had run money for long enough.”
“Despite Buxton’s arrival [as head of UK equities] he still inputted a lot to their team. He is very young to be retiring and from an industry where active management is under pressure; he is a casualty in a way.”
However, Dampier will be sticking with his holdings in the firm’s funds – the £860m Old Mutual Smaller Companies, the £249m Old Mutual Dynamic Equity and Buxton’s £1.5bn Old Mutual UK Alpha funds - having been investing in Old Mutual’s team for 12 years.
“He has a left a really good team and so I won’t be immediately changing anything.”
Charles Hepworth, investment director at GAM, who heads up the fund of funds range, also says he won’t be moving out of Old Mutual UK Alpha – which he holds as a top 10 holding across the GAM Star risk-rated range. In several of the funds it’s the second largest holding.
“He was clearly instrumental in Buxton’s move from Schroders and so it doesn’t look as if there is something suspicious going on. Buxton was the manager we bought into. He has a very enviable track record.”
In the GAM Star Growth fund Old Mutual UK Alpha is the largest holding, making up 9.8 per cent of the portfolio.
Ben Willis, head of research at Whitechurch, says the departure of Bradbury seemed to loom on the horizon especially since the arrival of Buxton.
“It was expected. He had taken a step back for some years but still has some influence on the portfolios. Back in the day he was responsible for setting up the mid and small cap desks at Old Mutual but he had handed them over some years ago to Dan Nichols,” he said.
“He had said before that he wanted to spend less time in the office and be less hands-on but still have an influence; so it was inevitable eventually but the UK equity desk is pretty solid, especially since Buxton joined the team.”
“He hasn’t been running the funds for some time but his approach was very top down. However, I wouldn’t say the funds are going to materially change very quickly.”
Tim Service will take over Bradbury’s remaining portfolios fully towards the end of 2014.
He joined Old Mutual Global in May 2007 as an equity analyst and is currently deputy manager on the Old Mutual UK Specialist strategy and the Old Mutual UK Dynamic strategy.
He has also been managing a segregated mandate in UK mid and small cap since May 2013.
Julian Ide, chief executive of Old Mutual Global Investors, says the promotion of Service shows that the firm is keen to offer career growth opportunities to members of the UK equities team.
He added: “I am grateful to Ashton for the guidance, stewardship and commitment to building the UK equities business prior to, and since Richard joined the company.”
“He has made a vital contribution to our management teams over many years, and particularly since I joined the company. The Old Mutual Global Investors management team and I respect his most recent decision. Ashton will leave with our thanks and gratitude.”
