Ben Whitmore, a former star fund manager at Jupiter Asset Management, has unveiled his first fund under his newly established investment firm, Brickwood. The launch comes months after Whitmore and several colleagues left Jupiter, where he previously managed around £10 billion in assets.
The Brickwood UK Value Fund will center on purchasing shares in undervalued UK companies, particularly those that are currently out of favor with the wider market. The fund will be co-managed by Whitmore and his colleague Kevin Murphy, with the aim of targeting both retail and institutional investors.
Whitmore’s new venture, Brickwood, was founded alongside former Jupiter manager Dermot Murphy and Kevin Murphy, who joined from Schroders. Additionally, Claudia Ripley, a former investment director at Jupiter, has been appointed as the firm’s CEO. The team’s departure from Jupiter at the end of 2023 marked a significant shift, as Whitmore’s team was responsible for managing approximately 20% of Jupiter’s total £50 billion in assets under management.
Despite Whitmore’s track record as one of Jupiter’s standout managers, industry observers are eager to see if he can replicate his previous success at Brickwood. Ben Yearsley, of consultancy Fairview Investing, noted that Whitmore had been a key figure at Jupiter but acknowledged that the challenge of replicating past performance remains.
Jupiter, meanwhile, appointed Alex Savvides from JO Hambro Capital Management to take over Whitmore’s former UK equity fund.
Fund’s Strategy and Holdings
The TM Brickwood UK Value Fund will focus on UK stocks that offer value, with potential investments including companies Whitmore previously backed at Jupiter, such as pharmaceutical giant GSK, energy major BP, and banking group Standard Chartered. In line with its value-focused strategy, the fund will primarily seek stocks that appear undervalued relative to their market potential.
“We wanted to create a boutique with a clear focus on value investing,” Whitmore shared with Financial Times. “Our goal is to bring a unique perspective to the market and make our mark.”
Focus on Governance Amid Post-Woodford Scrutiny
The firm is also establishing a board of non-executive directors to bolster governance practices, a response to heightened scrutiny following the collapse of Neil Woodford’s firm in 2019. Woodford’s firm faced criticism for poor stock selection and overexposure to illiquid assets. Whitmore emphasized that Brickwood is committed to strong governance, acknowledging the additional scrutiny on investment boutiques in the wake of the Woodford scandal. “We want to be highly focused on governance,” he said. “We welcome feedback from our board.”
Challenging Times for UK Equity Funds
The UK equity fund sector has faced difficulties in recent times, with investors shifting funds away from UK stocks in favor of global equities, particularly US growth stocks like Nvidia. Data from fund network Calastone revealed that individual investors pulled over £1 billion from UK equity funds last month. However, Whitmore believes that the relative value of UK stocks makes them an attractive proposition, particularly for long-term investors.
Looking ahead, Whitmore hinted that Brickwood may eventually expand its offering to include a global value fund, providing more diversified opportunities for investors.
Performance Record and Future Outlook
Prior to leaving Jupiter, Whitmore had delivered a return of 26% over three years, making him one of the top-performing UK equity managers. While Jupiter briefly considered transferring assets to Brickwood, it ultimately decided to retain Whitmore’s former £600 million portfolio under internal management.
As Brickwood embarks on its journey, all eyes will be on the performance of its inaugural fund and whether it can continue the strong legacy that Whitmore established at Jupiter.
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