It has been only two years since John Duffield set up New Star Asset Management, a London money-management firm, but it's already--well, a new star. Of Duffield's 21 funds, 20 are outperforming the market. And with $3.3 billion on its books, New Star is one of the few British firms that, in these hard times, is taking in more money than it's redeeming.
Duffield's admirers have never doubted that New Star would succeed. An Oxford graduate, Duffield, now 62, spent several years at a brokerage in the City of London and as a tax exile in Switzerland managing his wife's inheritance before founding Jupiter Asset Management in 1985. The company was so successful that Commerzbank (CRZBY) paid $260 million for a 75% stake in 1995. Duffield left in 2000 after quarreling with the Germans over the terms of a buyout. Now, Jupiter is floundering--and Duffield is having his revenge.