Toward the end of last year, Fidelity also surveyed investment professionals about its culture. It revealed concerns about a power imbalance between the mostly male fund managers and analysts, and showed that women and minorities generally felt out of place without a clear path forward in their careers, according to people with knowledge of the questionnaire.
Several months later, Fidelity shook up the leadership of the stock unit. Brian Hogan, the former head of the group under whose watch the alleged misconduct occurred, moved to another position in the firm in January. Hogan declined to comment.
Loporchio said at Fidelity when Hogan learned of allegations of harassment and other inappropriate behaviors, he responded properly. Hogan was moved to bring a fresh view to a strategically important business, the spokesman said.
New Leaders
In March, Johnson named Pam Holding, 54, as co-head of the equity group, making her the first woman to hold that post. She rose to the position after serving as chief investment officer of Fidelity Institutional Asset Management.
Three months later, Fidelity appointed Glazer, 34, a managing director of research, becoming the fourth woman on the leadership team. Glazer will also run solo more than $1 billion in industrial assets, replacing Tobias Welo, who will leave the firm at year-end. Welo didn’t respond to a request for comment.
The promotions have been a big enough break from the past to stir resentment among some men in the unit who now see less opportunity for themselves, said people with knowledge of the group. These veteran analysts and managers are concerned about what seems to be a concerted effort by Fidelity to elevate women in response to misconduct issues.
“The women who have been promoted to fund management roles have been with Fidelity for many years,” Loporchio said. These appointments are “given to the best candidate and done in the best interest of fund shareholders.”
As it is, more than 45 men in the stock unit solely run funds with more than $1 billion in assets, compared with three women. Four more women are set to join them over the next year, replacing men who are leaving or will manage separate funds. A handful of other women co-manage portfolios in excess of $1 billion.
Running Big Funds
Gupta, 37, will start exclusively managing the $7.8 billion in tech assets in December when her co-manager on the funds, Charlie Chai, retires. She was given her first fund to run more than five years ago and was appointed co-manager of the tech funds in July.
Shilpa Mehra, a portfolio manager at Fidelity since 2012, will oversee on her own a $1.8 billion trend fund, replacing Daniel Kelley, who became lead manager of a $27 billion pool. Mehra, who got an MBA from Columbia University, joined Fidelity in 2009.