Stay connected:
Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a255906
Gartmore's Williams says markets back in 1930's mode
Markets
by Algernon Craig Hall on Mar 14, 2004 at 11:36
Gartmore's star smaller companies fund manager Gervais Williams is looking back to the 1930s as a guide to the markets current trajectory.
Williams manages the Gartmore UK & Ireland Smaller Companies (Gartmore UK & Irish Small Companies) unit trust as well as investment trusts Gartmore Growth Opportunities (GGO), Gartmore Fledgling and Gartmore Irish Growth .
He told Citywire: 'A lot of share prices have risen a long way and it is natural now that they take a step back. I think markets are flat lining and that will continue.'
Williams parallels the current recovery to the situation in the 1930's, which he points out was a time when deflation was also a big worry. He said: 'It's following exactly the same pattern to date.'
If the markets continue to follow the same pattern Williams expects an uneventful 12-18 months before there are further pronounced gains. However, Williams believes there are and will be excellent opportunities while the overall market performance is flat.
He highlighted Baggeridge Brick (BGBK) as one such situation. He thinks it is a strong company set to benefit from an long awaited upturn in the brick industry. He is also very keen on the prospect of insurer Alea Group Holdings (ALEA). He thinks that many other investors under appreciated the company at the time of its float. Alea has inaugural results out on Monday.
The Gartmore UK & Irish Smaller Companies fund is up 99% over five years compared with a 40% rise by the FTSE Smaller Companies index. Over a year it is up 87% against a 45% rise by the index.
The fund's top 10 holdings are Evolution Group, Quintain Estates, Baggeridge Brick, Findel, Irish Continental, Northgate Information Solutions, Lookers, Iona Technologies, Pharmagene and McBride.
News sponsored by:
Subscribe to Wealth Manager magazine and rack up CPD points
Citywire Wealth Manager has partnered with CISI to enrich the experience of subscribers to our magazine.
Today's top headlines
More about this:
Look up the funds
Look up the shares
Look up the investment trusts
Archive
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
Click here to find out more from the Audience Development team.
Sponsored Video: J.P. Morgan Elect on growth, income and cash
J.P. Morgan Elect on investment growth, income and cash. More information on J.P. Morgan investment trusts.
Read more...
Subscribe to Wealth Manager magazine and rack up CPD points
by Dylan Lobo on May 16, 2013 at 16:17
leave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.