By STEPHEN MARRIOTT 05/03/2009
In 2008 there were a number of team changes within JPM’s US Behavioural Finance Team. This ultimately led to a change of the lead manager for the Dynamic mandates, with Michael Rosen (formerly of Bear Stearns) taking up the reins.
We have been advised that Rosen is adapting the TMV (trends, momentum, value) process in that he has more freedom in terms of the qualitative overlay and will be using additional valuation matrices. However, these changes led to a further deterioration in performance in 2008 (in fact the fund has now lost money relative to the S&P 500 since its inception in July 2003). As such, we would rather watch the fund from the sidelines for the moment and have thus removed the fund’s three star rating.
Existing investors could consider switching to JPM US, which is a risk constrained version of JPM US Dynamic and continues to be led by Robert Weller.