Neptune Investment Management has closed a third of its funds and is hiring more experienced staff in an attempt to “reboot” the business.
Neptune chief executive Robin Geffen wrote to investors outlining the firm’s strategy and planned changes earlier this week.
“We have had many successful years at Neptune and as such have shown our clients the level of success I expect from the fund managers here,” he says.
“When we have more challenging years, we look closely at ourselves and ask what we can do better. These changes are the fruit of that effort and I believe leave us well placed to thrive in the years ahead.”
Geffen started a company-wide review in the final quarter that will result in the closure of a third of Neptune’s funds by early this year.
The latest results posted by the privately held firm show profits slumped 42 per cent in 2013, the second year of poor performance.
While continuing to allow manager autonomy, Neptune is introducing new systems of research and risk.
Company research will be divided into 10 global sectors, each headed up by a “senior sector specialist” who will run model portfolios in those sectors. Those models are to become “core” to the firm’s process of managing funds.
The firm has bought the SunGard Enterprise risk modelling system to improve the managers’ ability to track their portfolio’s exposures through sector, economic and stock-specific lenses.