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Revealed: the fund stars of the future
on Apr 24, 2014 at 14:30
Our readers give their verdict on the star performers of tomorrow.
In the profound market rally that has followed the lows of the credit crisis, how are fund researchers identifying the star performers of tomorrow? These managers adhere to a robust process and have delivered strong relative and risk-adjusted returns. Here we reveal a handful of rising stars, who are blazing a trail and are tipped to take on the mantle from the established names in the industry.
Miton Asset Management’s Georgina Hamilton is a top pick of Peter Lowman, CIO of Investment Quorum. She co-manages the £64.4 million CF Miton UK Value Opportunities fund with George Godber and cut her teeth as an analyst at Matterley.
‘Although the Miton UK Value Opportunities fund was launched in March 2013 its performance has been impressive, which we believe is representative of the stock-picking skills of this dynamic team. Indeed, the skill required to find undervalued assets is a talent many individuals might find difficult given the balance sheet work required. However, we feel that Georgina is already demonstrating the skill required to add value within a portfolio,’ Lowman said.
Stephen Peters, an analyst at Charles Stanley, highlights AA-rated Thomas Moore, manager of the Standard Life Inv UK Equity Unconstrained Income fund, as a manager who is benefiting from the depth of experience on the UK equity team, led by A-rated David Cumming.
Nevertheless, the fund manager has shown he can generate an enviable track record on his own since taking over the fund in 2009.
‘[Moore] took over the trust having an okay but not stellar track record on his UK open-ended fund. We saw that he had talent but that the Standard Life process was yet to really take off, which is what we have seen of late,’ Peters said. ‘We also liked the fact he did something different to his peers back then, being willing to allocate and find income growth in mid and small caps.
Graham Duce, co-head of multi-manager at Aberdeen Asset Management, highlights Chris Reid as one to watch. He points to the skill and experience of Reid's co-manager Matthew Smith.
He has run the £324 million UK Income fund since late 2011 and was appointed a lead manager on the £448 million Majedie UK Focus fund in December 2012. Over the past three years he has posted a 22.2% return with the Focus fund versus 15.5% by the average manager.
‘A relatively unknown fund in the UK, Le Cornu runs the fund from Hong Kong. It is a quality Asian smaller companies fund that stands up well to the likes of Aberdeen and First State’s managed funds in recent years,’ Peters said.
Le Cornu has managed the £387.6 million fund since October 2011.
He has posted high risk-adjusted returns since he took over the fund from Patrick Harrington in January 2012. The fund is currently around £128 million.
He is coming up to a three-year track record and has so far demonstrated strong risk-adjusted performance.
AXA IM’s Chris St John has also been highlighted as a star performer
‘We like his pragmatic approach to stock selection, coupled with an emphasis on themes within the UK economy,” David Coombs, Rathbones’ fund research head, explained.
As the fund is under £100 million, Coombs says this should prove attractive to potential investors who buy in early to this focused investment strategy.
Peter Lowman of Investment Quorum pays close attention to the training and background of fund managers, seeking out those with a deep understanding of corporate accounting. This, he believes, can translate into a willingness to hunt for undervalued or mispriced companies. Mark Martin, who has run the £190 million UK Mid Cap fund from launch in 2008, has shown a fantastic ability to do this, backing the winners in the UK mid cap sector.
‘The performance confirms our belief that he has the skill and ability to become one of the leading fund managers of the future,’ Lowman added.
Graham Duce of Aberdeen Asset Management anticipates that Stephen Message, manager of the Old Mutual UK Equity Income fund, will continue to flourish, supported by the wealth of experience that sits on his team.
‘Key factors for consideration of an “old head on young shoulders” are process, discipline, focus and clarity of thinking. Having good people on the desk helps. Think of his colleagues Richard Buxton, Simon Murphy, Ashton Bradbury at Old Mutual,’ he explained.
Mentored by renowned UK fund manager AA-rated Giles Hargreave, AAA-rated Siddarth Chand Lall also deserves a mention. He has run the Marlborough Multi-Cap Income fund since launch in June 2011 and has so far posted a strong track record.
On the bond side, the Citywire Selection team remain positive on + rated Torcail Stewart. He has learned his trade alongside Stephen Rodger as co-manager of the Baillie Gifford Corporate Bond since 2010.
More about this:
Look up the funds
- Baillie Gifford Corporate Bond A Inc
- Jupiter Undervalued Assets Acc
- JOHCM UK Growth B
- Neptune UK Mid Cap A Acc GBP
- CF Miton UK Value Opportunities Ret A Acc
- Standard Life Inv UK Equity Inc Unconstr Ret Acc
- Macquarie Asia New Stars C USD
Look up the fund managers
- Georgina Hamilton
- Siddarth Chand Lall
- Torcail Stewart
- Thomas Moore
- Chris Reid
- Samuel Le Cornu
- Steve Davies
- Vishal Bhatia
- Chris St John
- Mark Martin
- Stephen Message