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Potter's picks: 4 fund managers for income

Gary Potter, who runs a 'multi-manager' fund that invests in other funds, has picked out four fund managers with comparatively small assets but, he believes, a lot of potential.

 
Potter's picks: 4 fund managers for income

Gary Potter of F&C Asset Management is one of the best known 'fund of fund' managers who invest in the funds of other fund managers.

Alongside colleague Robert Burdett, Potter's career has included stints at Rothschild and Credit Suisse before arriving at F&C, where his funds include the £710 million F&C Multi Manager Navigator Distribution fund.

‘I don’t buy things, I buy people,’ said Potter, who has picked out four relatively unknown funds that he believes have a lot of potential.

‘We would like to be involved with funds when they are building a track record rather than living off it,’ he said. ‘That doesn’t mean to say we are allocating to gambles: these are tried and tested allocations. It’s about familiarity and hard work: if you turn over a lot of stones, you might find some prizes.’

Potter's fund has generated a total return of 42% over the past five years placing it 13th out of 192 funds in the Mixed Investment 20-60% Shares sector.

Potter's picks are on the following pages. Click on the names for the fund fact sheets.

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8 comments so far. Why not have your say?

Tony Peterson

Jun 10, 2013 at 16:08

Why pick fund managers?

Why not invest yourself for income and cut out the middlemen?

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philip gosling

Jun 10, 2013 at 16:59

my reasons are twofold

1 Lack of = (expertise/experience/time)°

2 Plenty of = Fear

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Tony Peterson

Jun 10, 2013 at 18:20

So, philip, you are happy to pay someone to make shamefully mediocre returns by (a) charging you for his expertise and then (b) dumping you in other people's funds who also charge you?

What a corrosive force fear like yours is.

And he come 13th out of 192 funds with a 42% return over 5 years! What an appalling indictment on the industry! Especially when you factor inflation in.

For the record, my own portfolio is up over 70% in the last five years and I have repeatedly told Citywire threads which shares I have been investing in and why.

Time to do a Roosevelt and realise that fear itself is the enemy.

Grow up and take control. Cut out middlemen.

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philip gosling

Jun 11, 2013 at 11:11

Tony

Did I say I invested in fund of fund managers? No

Did you read my point 1? No

Do not slag off people who politely answer a question you raised or you'll end up divorced twice and Billy no friends

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Tony Peterson

Jun 11, 2013 at 11:50

philip

the "equal" sign you used is a mathematical shorthand for the word "is".

I read your point 1. It is incoherent. Rather like your rage.

You make me laugh. Why anyone should try to invest in Baldrick type cunning plans where the effect of the charges is compounded, not the growth?

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Pot meet kettle....kettle pot

Jun 11, 2013 at 21:48

Tony you shouldn't go quoting performance figures without risk warnings.

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Harry Brooks

Jun 16, 2013 at 11:20

I’m not going to get involved n a lengthy exchange with any of you; I’ve done it before, it’s too time-consuming, and most contributors to these threads are under-informed, biased and over-opinionated. HOWEVER, just to get away from all that - and the general aggravation of financial management - for five minutes, please have a look at:

http://youtu.be/3eMzjWjIByI

It’s got nothing to do with money or politics; it’s just a little bit of simple, homely fun…and there’s no catch

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LEICESTER VESTOR

Dec 07, 2014 at 15:08

Gosh ' how come I've missed this interesting blog for so long . I see some friends here trying to slag my good friend Tony Peterson , who has a very good and valid point about direct equities investments rather than through a

fund manager .

We have a continuing thread on this topic going for nearly two years now in the

citywire city picks top 20 funds with the ensuing discussion at the end.

I'm sure some readers will find it interesting and informative .

Tony's point is quite valid that why lose so much of your hard earned savings

to a fund manager when you can directly invest into the companies and reap the full rewards of your efforts . There can be many reasons for it .

First and foremost which comes to mind is the huge variety of uk and international markets and selection of appropriate sectors , allocation percentages . risk management , and switching in and out of various asset classes at an opportune time etc. and all these factors need knowledge ,

experience and flare for a bit of adventurism unless you're a 100 % winner type who would rather stay in the building society deposits. There can be many other reasons as well but we will ignore them for the moment .

So the idea of paying somebody for their expertise and knowledge

especially in financial investments in actively managed funds is not a bad one but bear in mind that you have to pay the price of reduced rewards or actively managed reduced or adjusted losses in a bear market . There are pro's and con's for both sides of this argument . Its like gaining on the swings and losing on the round abouts . Since 1963 I have been through both types of investment strategies . and far a while I was mainly focussed on the funds

and OEIC's investment till Tony Peterson and JEL G managed to persuade me to venture back into direct equity investments .

and this time I am finding more value in the AIM and small cap stocks where

I hold both types funds as well as direct equity acquisitions .

I have managed to transfer appx. 30 % of portfolio into equities and am glad to say AIM'S investments in ISA seems to be beating all my previous gains on a unprecedented scale .

And direct share purchases are beating the rewards hands down .

I've picked up or switched into AIM's/Small caps equities and funds

Quindell , Fitbug , Blink , Tesco ( exception) and Marlborough multi cap income, Marlborough micro cap. , fundsmith equity , old mutuals uk smaller co's and the latest Rivers and Mercantile multi cap investment co. which is

purely AIM 's investment fund , just to name a few.

So to conculde I would say both types of investment

strategies are ok on the merit grounds depending whichever suits whoever . In my case I am using both direct equities , investment trusts . Qeic's and funds and I shall

adjust the percentage allocations as the case may be depending on market conditions, My ideal aim is to keep 40 % direct equities , 40 % funds/Oeics

and 10 % bonds/Pibs and 10 % cash for emergencies .

Your comments are welcome re this thread

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