Bloomberg News

Credit Suisse’s Arnold Said to Join Wellington Management

April 12, 2013

Wellington Management Company LLP, manager of the $26.5 billion Vanguard Health Care Fund (VGHCX), hired Credit Suisse Group AG (CSGN)’s (CSGN) top drug-stock analyst, according to a person with knowledge of the matter.

Catherine J. Arnold, a New York-based managing director at Credit Suisse, will work on Wellington’s health team, said the person, who asked not to be identified because the hiring hasn’t been made public. Jean M. Hynes, a Wellington partner, became manager of Vanguard Health, the world’s largest health-care mutual fund, when Edward P. Owens retired at the end of 2012.

Arnold, the global head of pharmaceutical research at Zurich-based Credit Suisse, covered U.S. drugmakers including Merck & Co., Pfizer Inc. and Johnson & Johnson. She worked at the bank for nine years.

The world’s two biggest health funds have undergone management transitions this year. After Owens’s retirement, Kris Jenner in February left T. Rowe Price Group Inc. (TROW), where he ran the $5.8 billion Health Sciences Fund. Jenner has raised more than $100 million for a hedge fund to invest in health and biotechnology stocks, a person with knowledge of his plans said April 10.

Credit Suisse declined to comment on Arnold, said Perrin Wheeler, a spokeswoman for the bank in New York. Wellington also declined to comment, said Sara Sherman, a spokeswoman for the Boston-based firm. Vanguard Group Inc., the biggest U.S. mutual- fund company, didn’t immediately respond to a request for comment.

Trailing Peers

Wellington manages about $250 billion for Valley Forge, Pennsylvania-based Vanguard across 20 funds.

Vanguard Health under Owens outperformed every U.S. equity mutual fund since it was created in 1984. The fund has returned 18 percent this year, trailing 64 percent of peers, according to Morningstar Inc.

Hynes, a Wellington senior vice president, worked on the fund’s team for almost 20 years before being named in September to take over for Owens.

The fund had 50 percent of its money in pharmaceuticals, 12 percent in managed-health companies and 11 percent in biotechnology as of Feb. 28, according to Vanguard’s website. The biggest holdings were Merck, Roche Holding AG and Amgen Inc.

For Related News and Information: Jenner Said to Raise $100 Million for Health-Care Hedge Fund (1)

To contact the reporter on this story: Trista Kelley in London at tkelley2@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net


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