HEAD-TO-HEAD: Alliance Bernstein versus MFS

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Manager review

“Despite some management shuffling, MFS Meridian US Value is still buoyed by a talented veteran, a promising newcomer, and a deep analyst bench, whereas we have some concerns around key-person and succession risk at AB Select US Equity,” said Wolfstetter.

“Withstanding significant change at the top, MFS Meridian US Value remains in good hands,” she added. Steve Gorham, manager since January 2002, officially left this strategy in late 2020 to focus on his other MFS strategies.

In December 2019, MFS appointed Katie Cannan to succeed him. “Cannan’s breadth of sector coverage experience will help her transition to a generalist portfolio manager role, and she has long-time manager Nevin Chitkara to lean on as well,” according to Wolfstetter.

The managers are supported by MFS’ strong central analyst team. More than 100 equity and credit analysts make up the research team, and they are grouped together across eight sectors.

AB Select US Equity is led by veteran manager Kurt Feuerman, who has been the dominant force behind this strategy. Feuerman joined Alliance Bernstein in 2011 with about half of his original team at Caxton, where he had been running this US equity strategy since 2005 and its long-short version since 1999.

He is supported by a co-CIO, six analysts, and two execution traders. “Turnover within the analyst ranks has been notable over the past few years, though seasoned hires and a high level of experience across the team provide comfort,” said Wolfstetter.

“Key-person risk, however, is elevated given the strategy’s reliance on Feuerman’s intuition, and there is no visibility around the potential timing of his retirement.”

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