The Managers Funds trustees voted to rehire Robert Cook and Thomas Hauser as subadvisors to their High Yield Fund, the firm announced on Tuesday. Unfortunately for 40/86 Advisors, Cook and Hauser's former employer, the contract is following them to JPMorgan Fleming.

In addition to the contract, Cook and Hauser also took a team of five credit analysts and staff to JPMorgan Fleming when they left 40/86 Advisors in mid-April, said Thomas G. Hoffman, director of research at The Managers Funds.

After the Cook-Hauser team left 40/86 Advisors, Hoffman said that the high yield fund was managed temporarily by Loomis Sayles while the fund firm looked for a new subadvisor. There was no preexisting agreement to re-award the high yield fund contract to its former managers, he added.

Hoffman said that the search for a new subadvisor was done secretively and quickly. When conducting subadvisor searches, The Managers Funds typically either perform an internal analysis or use an investment consultant.

A part of The Managers Funds' decision to rehire Cook and Hauser was that "we noted that they landed at JPMorgan where they would have resources equal to or better than before," said Hoffman.

Cook and Hauser "have been instrumental to the success of this Fund," said Peter M. Lebovitz, president and chief executive officer of The Managers Funds, an AMG subsidiary.

Robert Cook and Thomas Hauser have co-managed the high yield fund since in since 2000 and 2002, respectively.

The subadvisor switch will happen before the end of July. 

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