Fidelity Investments has named Tim Cohen and Pam Holding to run its nearly $1 trillion equity division, replacing Brian Hogan, who moved to a different unit in January.
The move fuels the rumors that Fidelity is moving toward a more team-based approach and away from its current star manager system. Mr. Cohen currently serves as director of research and manages all global equity analysts. In her current role as chief investment officer for Fidelity Institutional Asset Management's equity group, Ms. Holding oversees a group that's much more team-oriented than Fidelity Management & Research, which runs many of the company's retail stock offerings.
Does this mean a new era of
team leadership is dawning at Fidelity, which has long been known for its independent and idiosyncratic managers? "I think it's too early to say for sure," said Katie Rushkewicz Reichart, director of equity strategies for
Morningstar Inc.
"It's interesting that they brought someone over with a different way of doing things from Fidelity Institutional," she said. "I don't think it's some huge shift, and I don't think they want to mess with the star manager formula if it's working, but it shows they are open to taking a fresh look at everything."
In the background, too, is the narrative that the equity division had become something of a boy's club, as told by the
Wall Street Journal's recent piece citing claims of harassment at Fidelity. The article claimed — and Fidelity denied — that Mr. Hogan was part of a group of executives known as "the old boys' club." Having a female co-manager of the division could help quell those rumors.
In her new role, Ms. Holding will oversee the value and income, small-cap, international and Fidelity Institutional Asset Management equity investment teams, as well as three managing directors of equity research. In his new role, Mr. Cohen will oversee the growth, large-cap core, capital appreciation and mid-cap investment teams, as well as five managing directors of equity research and the head of equity trading. Both Mr. Cohen and Ms. Holding will report to Charlie Morrison, president of asset management at Fidelity.
"Pam and Tim are more than qualified and prepared for their new roles," Mr. Morrison said. "Both have a broad range of leadership experience and have exhibited outstanding leadership capabilities in both their current and past investment roles. We believe the co-head structure provides additional leadership and oversight resources to the Equity division and strongly positions our equity strategies for future success on behalf of our clients."
