The final portfolio is reasonably concentrated at 40-60 stocks. Positions can run to a maximum of 7 per cent and the top 10 holdings typically account for around half of the portfolio.
The manager takes a long-term approach with investments and targets outperformance over five years, something the fund has comfortably done by returning 59 per cent in that time, comfortably beating the average return of 40 per cent for funds in the IA UK All Companies sector. The fund has an ongoing charge of 0.99 per cent.
This fund is a hidden gem in the crowded and highly competitive UK market. It is a stock-picking fund led by an extremely experienced manager who has a great track record.
The fact the fund has outperformed with a value tilt – something that has been a headwind over the past decade – is a true testament both to the underlying process and the benefits of strong active management.
Darius McDermott is managing director of FundCalibre
