OppenheimerFunds raids rival in bid to add value to value funds

Spahr, three other Columbia Funds vets, sign on; 'no room for closet indexers'
JAN 03, 2013
OppenheimerFunds is trying to give its value funds a boost with the help of a rival's team. The company today announced that it has hired Laton Spahr, former manager of the $5.3 billion Columbia Dividend Opportunity Fund (INEGX), along with three other Columbia Funds vets, to take over Oppenheimer's value funds. “The value funds have been laggards over the past couple of years,” said Art Steinmetz, Oppenheimer's chief investment officer. “We saw this as an opportunity to grab some of the top talent in the value investing sector.” Talent is at a premium now because of the extra pressure active managers face from low-cost index products such as exchange-traded funds, Mr. Steinmetz said. “We're required to demonstrate we're worth the fees we charge every day,” he said. “There's no room for closet indexers in an active-management shop anymore.” Mr. Spahr will become manager of the $2.2 billion Oppenheimer Value Fund (CGRWX) and the $1.4 billion Oppenheimer Small & Mid Cap Value Fund (QVSCX) on March 11. Former managers Mitchell Williams and John Damian are no longer with OppenheimerFunds, spokeswoman Kristina Ferrari Baldridge said. The change isn't surprising, according to David Kathman, a mutual fund analyst at Morningstar Inc. “Both funds used to be star performers but have been struggling in recent years,” he said. The Small & Mid Cap Value Fund, for example, finished in the bottom 10% of all midcap funds last year. The Oppenheimer Value Fund finished in the bottom quartile of large-cap funds over the trailing-three- and five-year periods as of Feb. 27. Mr. Spahr's previous fund, which he co-managed with Steven Schroll and Paul Stocking, has done much better recently. Its three- and five-year returns as of Feb. 27 rank in the top 10% of all large-cap-value funds, according to Morningstar. Mr. Schroll and Mr. Stocking are staying at Columbia. “We have a strong team in place,” Columbia spokesman Ryan Lund wrote in a prepared statement. “The funds are team-managed, and the current managers both have more than 25 years of investment experience.”

Latest News

Most pre-retirees are planning without a planner - and it shows
Most pre-retirees are planning without a planner - and it shows

New LIMRA data reveal a stubborn advice gap that financial professionals are well-positioned to close.

Treasury hits BofA with $1.2B fine over money laundering violations
Treasury hits BofA with $1.2B fine over money laundering violations

“Today’s actions send a clear message that even the biggest financial institutions are not above the law,” said Treasury Secretary Scott Bessent.

The hidden cost of growing a firm without intention
The hidden cost of growing a firm without intention

To build a truly self-sustaining practice, enterprising advisors have to start with a vision of what they want to be – and accept the realities that come with building toward it.

Waverly, Apella buy $412M in RIA assets across Oregon, Northeast
Waverly, Apella buy $412M in RIA assets across Oregon, Northeast

Serial acquirers add a 35-year-old Oregon wealth manager and a New York practice focused on women navigating life transitions.

&Partners taps two UBS leaders to run its private wealth business
&Partners taps two UBS leaders to run its private wealth business

Mara Glassel and Julie Fox will co-lead the fast-growing hybrid RIA’s ultra-high-net-worth and private wealth businesses.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor