Steer is to remain with New Star through its transition process with Henderson, which is set to conclude in April, and will continue to run both the UK alpha and hedge fund Gemini until then.
He says: “This is a big opportunity for me. Artemis has great ambition and I just like the way the business is run. It just felt like the right time with the New Star story coming to an end.”
Steer says he is joining the firm’s multi-cap team and will look to build the hedge fund side of the business.
Stephen Yiu, Steer’s assistant fund manager on UK alpha, is also joining the firm. Steer says he is also looking to launch a similar vehicle to UK alpha at Artemis as well possibly launching an absolute return fund.
Steer says he will be continuing to use his proprietary screening tool MERGE as oppose to Artemis’ SmartGARP system.
Artemis product and communications director Nick Wells says: “Tim will join us once his contractual obligations are completed at New Star. At this early stage little has been decided but I expect his arrival is likely to be in months rather than days.”
Speaking to Money Marketing last month , Steer said he was still undecided on his future and refused to rule out going it alone if “the perfect opportunity” came along.
Steer has managed the £213.4m UK alpha fund since launch in 2001. Prior to joining New Star, Steer worked at Merrill Lynch as head of pan-European mid-cap research. He also spent five years at Ernst & Young.
A spokesperson for Henderson says: “This doesn’t affect the benefits and value of the deal. HGI has a well respected UK equity team (including James Henderson, Job Curtis, Graham Kitchen and Stephen Peak) as well as there being further talent in the UK space at New Star.
“We are in positive late stage discussions with other members of the New Star team. The loss of Tim Steer before we really had the opportunity to complete discussions, while disappointing, is not material to the overall attractiveness of the proposed acquisition.”
Hargreaves Lansdown investment manager Ben Yearsley says: “It’s a good move for him and it bolsters Artemis’ UK team every further. It is a blow for
Henderson but you’re not going to get every manager, he obviously wants to
work in a smaller boutique culture and that’s what you’ve got with Artemis.
He’s a good manager, he’ll prosper wherever he goes and he’ll fit in quite
nicely with the Artemis philosophy.”
Chelsea Financial Services managing director Darius McDermott says: “It’s
great news for Artemis. Tim’s a highly regarded UK fund manager both on the retail side and the hedge fund side. It’s not a surprise that managers are
talking to other firms given the uncertainty there has been at New Star but
just because one manager has left doesn’t mean others necessarily will. I
imagine they’ll take their own individual offers if asked to stay on their