Young guns move up the asset management ranks

The appointment of an unknown to run part of Fidelity's flagship Special Situations Fund, is creating consternation among fund managers. But recruiters say it's all part of a new culture of meritocracy in the industry.

The appointment of an unknown to run part of Fidelity's flagship Special Situations Fund, is creating consternation among fund managers. But recruiters say it's all part of a new culture of meritocracy in the industry.

"If you're really good, it's now easier to gain promotion sooner," says Chris Manfield at search firm Whitney Group. "There's been a brain drain to the hedge fund world, and some of the bigger fund managers have struggled to attract the best people. When they get them, they're often prepared to give them responsibility more quickly."

Jorma Korhonen, the fund manager put forward to run half of the 6bn Special Situations Fund, joined Fidelity as an analyst in 1996. Now aged 40, he spent the past two years running the company's Global Equity and Global Focus Funds, with combined assets of just 108m.

Manfield says there are plenty of managers younger than Korhonen who are managing even larger sums of money: "Asset management has become a very meritocratic business these days."

He points to the likes of David Blumer, the 38 year old chief executive of Credit Suisse Asset Management, who was promoted into the role this year.

Korhonen also isn't quite as unknown as people think, says Manfield: "He might be unknown to the outside world, but he's quite familiar in headhunting circles. He was ranked third in Reuters' European large company survey back in 1999 aged just 32."