4 Funds with Rating Changes After Manager Departures

When a seasoned manager leaves, even the strongest teams can face disruption. Transitions often introduce uncertainty, as new decision-makers may approach the portfolio differently, alter risk profiles, or simply need time to get up to speed.

Manager departures don’t always spell trouble, but they do raise questions about continuity and oversight. Investors should be aware that shifts in a fund’s leadership can lead to choppier short-term results or meaningful changes in how the strategy is executed. Below are four funds that had an experienced manager depart in 2025 and saw their People ratings downgraded as a result.

Oakmark International Small Cap OAKEX lost influential comanager Michael Manelli, who stepped down from his portfolio management roles on July 1, 2025, and later retired from Harris Associates. Manelli had joined the firm in 2005 and served as a comanager from 2011, becoming a central figure in the strategy’s success. His unexpected exit removed a highly regarded investor whose judgment and experience were deeply embedded in the fund’s process.

Manelli’s departure altered what had been a clear succession plan for veteran portfolio manager David Herro. While Herro remains in place, many of Manelli’s former responsibilities have shifted to comanager Justin Hance, who joined the firm in 2010 and became a comanager in 2016. Despite strong remaining resources, Manelli’s exit prompted a People rating downgrade to Above Average from High.

T. Rowe Price New Horizons PRNHX is under new leadership following Josh Spencer’s exit on Sept. 30, 2025. Spencer had run the portfolio since 2019, but the strategy had badly underperformed the Russell 2000 Growth Index since mid-2021, so the change wasn’t unexpected. His replacement, Shaun Currie, had to get up to speed quickly, though. He joined Spencer here in July 2025 and took over lead duties at the end of September.

Currie, who had to transition from T. Rowe Price Investment Management to T. Rowe Price Associates before the move, is a veteran of the firm. He joined T. Rowe Price nearly a decade ago as a business service analyst. In 2023, the firm appointed him as manager on Future of Finance Equity and then in 2024 as associate manager on T. Rowe Price SmallCap Value PRSVX. While his early results have been solid, Currie hasn’t yet managed a strategy with a broad mandate and an asset base of this size. Given the uncertainties, the fund’s People rating dropped to Average from Above Average.

Another long-tenured manager at T. Rowe Price retired in 2025, prompting a People rating downgrade to Above Average from High on T. Rowe Price Mid-Cap Growth RPMGX. Brian Berghuis stepped back from the lead role at the end of 2025 after more than three decades at the helm. Over that time, he compiled an excellent record as a strong stock-picker and leader.

The transition, however, has been carefully planned. Ashley Woodruff, who has more than 20 years of experience and has worked alongside Berghuis since 2020, now leads the strategy. She continues to work with veteran manager Don Easley. Both will rely on T. Rowe Price Investment Management’s seasoned, small/mid-cap-focused analyst bench.

Parnassus Mid Cap PARMX saw the departure of Matthew Gershuny, which contributed to a People rating downgrade to Average from Above Average. Gershuny left the firm on Sept. 16, 2025, after leading the strategy for 17 years. Meanwhile, three experienced analysts left the firm in recent years, increasing the remaining managers’ reliance on new, untested hires. Out of 12 analysts, only four have more than five years of industry experience. Remaining managers Lori Keith and Ian Sexsmith provide some stability, but the team now carries a heavier portfolio management and research load across multiple funds.