When to fire a Fund Manager
Which brings me on to more of this subject. “When to fire a manager” — this is quite
topical for us.
This is data from Cambridge Associates looking at when to fire
managers.
If you look at managers’ performance for three years before the change
— the ones who were hired outperformed 4.8%. In the last year before the change,
7.2% for the stars, minus 3.7% for the ones you fired. “You’re fired, you’re hired.”
And now the guys who were doing 7.2% underperform, and the ones who were
underperforming outperform — and so it is on one year and on three years.
– Fundsmith 2025 Investor Meeting Transcript
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