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Rich List: Terry Smith joins wealth elite in fund manager boom

Rich List: Terry Smith joins wealth elite in fund manager boom

Terry Smith has entered the Sunday Times Rich List with a £110 million fortune in a prosperous 2014 for the fund management industry.

Citywire AA-rated Smith’s (pictured) investment boutique Fundsmith runs £3 billion, with its flagship Fundsmith Equity fund recently celebrating its four-year anniversary. In this time the fund, which prides itself on low turnover, has doubled investors’ money.

Smith made the bulk of his money at Collins Stewart, where he led a management buyout in 2000. Three years later the broker acquired Tullett Prebon and Smith continues to own hold a £35 million stake in Prebon after it demerged from Collins Stewart in 2006.

However, it was not the most profitable of years for Hargreaves Lansdown founders Peter Hargreaves and Stephen Lansdown, whose wealth declined by £496 million to £1.894 billion and £157 million to £1.29 billion.

The pair own 32% and 16% of the firm respectively and were hit by the 25% fall in Hargreaves Lansdown’s share price in 2014. Shares have since recovered and closed at £11.81 last Friday.

Crispin Odey and Nichola Pease were among the biggest risers in the list as their wealth more than doubled in 2014 by £580 million to £1.1 billion.

This was thanks in part to the success of Odey's (pictured) eponymous fund management firm, which trebled profit to £174.2 million in 2014 on the back of a big jump in performance fees from £36.7 million to £143.5 million, earning Odey £47.8 million.  

Pease chaired JO Hambro capital until its sale in 2011, which netted her £26 million.

 

Citywire AA-rated Nicolas Walewski (above), manager of the Alken European Opportunities and Alken Absolute Return Europe fund, was another big riser with his wealth rising by £100 million to £195 million. His eponymous fund firm cashed a £73 million profit last year.

Ruffer founder Jonathan Ruffer became £20 million richer in 2014, lifting his wealth to £400 million.

Ruffer, who stepped back from fund management in March 2012, is also one of the biggest givers on the Rich List, donating £45.6 million (11.4% of his wealth)  to the heritage, arts and community. This includes more than £30 million preserving Co Durham’s Auckland Castle.

Jupiter and New Star founder John Duffield is ranked 302 on the list with a £340 million fortune after earning £15 million in 2014. Duffield, who sold Jupiter in 1985 for £185 million, launched his new firm Brompton Asset Management in 2009.

Duffield's wealth is now equal to Queen’s, who fell out of the top 300 for the first time.

The Hoare family gained £50 million to stand at £340 million thanks to a record year for its private bank, which registered a £30.1 million during the financial year.

But it was not such a prosperous year for ETF Securities majority shareholder Graham Tuckwell though, as his wealth slipped by £20 million to £253 million.

Further down the list former Gartmore fund manager Roger Guy’s worth held at £200 million, while private equity specialist Peter Dubens - who helped star fund manager Neil Woodford establish his investment firm last year - earned £5 million through his Oakley Capital vehicle to lift his wealth to £105 million.

Meanwhile Sandy Nairn’s worth stood on £104 million on the back of a £21.5 million profit for his investment firm Edinburgh Partners.

Billionaire boom

Warner music owner Len Blavatnik was named the UK’s richest man with a fortune of £13.17 billion, a rise of £3.17 billion over the year.

He replaced brothers Sri and Gopi Hinduja, whose wealth rose by £1.1 billion to £13 billion last year.

Elsewhere Bruno Schroder and family saw their wealth increase by £890 million to £3.76 billion. 

Meanwhile the worth of Adam Fleming & family held at £1.5 billion in year which saw Fleming Family & Partners merge with Stonehage to create one of the world’s largest family offices.

Brevan Howard founder Alan Howard and BlueCrest co-founder Michael Platt were the highest placed representatives from the hedge fund industry, with each possessing a £1.5 billion pot.

They were among the 25 richest hedge fund managers, which contains seven billionaires. 

Overall the wealth of the 1,000 richest individuals and families has more than doubled in the last 10 years to £547 billion.  

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