At the right price, JPMorgan Value Advantage has a chance to deliver value for investors thanks to an experienced and successful investment staff.
With longtime lead manager Jonathan Simon slated to hand over control of this strategy in July 2024 and retire in early 2025, a different pair of capable hands takes the wheel. Scott Blasdell, who has posted strong results at JPMorgan Large Cap Value HLQVX for more than a decade, will assume control, ushering in a new era for this all-cap offering. Blasdell is a 25-year veteran of J.P. Morgan and brings over his small team of experienced large-cap analysts to join comanager Graham Spence and a dedicated small-mid value analyst team. Spence was hired in 2013 as an assistant to Simon and became comanager in 2020. He’ll play a key role in this new combination given his ties to the previous lead manager and familiarity with the portfolio. Blasdell and Spence will continue to benefit from the research of the firm’s stellar core analyst team, which has powered strong results across a variety of US large-cap strategies.
Blasdell’s arrival offers some assurances but raises other questions. Blasdell’s large-cap fund is aggressive, fast-pivoting, and can buy cheap stocks roiled in controversy. But this strategy has historically gravitated toward higher-quality companies with valuation as a secondary consideration, traded infrequently, and kept a long-time horizon. Blasdell says this strategy will remain mostly the same and that he will adapt his style to fit his new environment. He admits that annual portfolio turnover may increase from its typical 20% mark but that it should be below the roughly 150% norm of his large-cap fund. He’s also pledged to assess his typical universe through a quality filter, focusing on companies that he’s comfortable owning for a long time through the market cycle. This strategy’s inclusion of small caps presents another angle, as Blasdell lacks extensive experience in that segment. He can lean on Spence’s experience and knowledge, as well as the small-mid analyst team as he gets up to speed.
Overall, it is difficult to embrace the investment process at this stage, but with a bevy of good resources, the team has a shot to succeed.