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View the video online at http://citywire.co.uk/money/video/a661675
John Dodd: 5 money-makers for my investors
John Dodd, joint fund manager of the Artemis Alpha investment trust, discusses five aspects of its portfolio he believes will pay off.
The Artemis Alpha investment trust has a reputation as a 'best ideas' fund for the investment team at Artemis Investment Management.
The fund is also in our Citywire Selection list of fund recommendations.
However, the fund has suffered a few years of comparatively poor performance to leave ranked half-way down the UK Growth league of investment trusts, although its five-year return of 46.4% is perfectly respectable and ranks it fifth out of 16 funds.
In this video interview joint fund manager John Dodd talks about some of the themes and stocks he thinks will do well for the trust's shareholders. They are:
- Oil exploration companies
- Online retailing and the Hut Group
- Reaction Engines, maker of the Skylon rocket
- Agriculture in the Ukraine
- Palm oil plantations in South East Asia.
He also explains why nearly a third of the fund is held in unquoted companies, not listed on a stock exchange.
Citywire Selection Verdict: John Dodd and Adrian Paterson invest around a quarter of the trust in unquoted companies including energy companies which have seen recent false dawns in coming to market. Share price performance has been lacklustre over the past two years and the trust still trades at a discount having swung from a premium in the second half of 2011. Moreover, the strategy of investing in off-benchmark companies can result in performance patterns wildly different from the market. This trust is therefore riskier than our other sector picks but has a long-term track record of outperformance.