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Tom Dobell: we see more opportunities than we can shake a stick at
by David Campbell on Oct 10, 2013 at 10:33
‘We are seeing more potential investment opportunities than we can shake a stick at,’ he wrote in his regular investment update, titled bluntly “Time to Buy”. ‘Competition for places [in] the fund is extremely high.’
Dobell has in a series of interviews and statements since 2011 been very frank about what he described as one of the hardest periods of his career, as heavy exposure to commodity and material stocks which had served him very well for 10 years turned against him.
Over three years Dobell has returned 32% versus an average UK All Companies peer return of 46.93% and a FTSE All Share return of 40.51%. The last year has continued to be tough, returning 10.17% versus a peer return of 23.98%.
While this is not the first time he has boldly predicted a turnaround in either the market or his fortunes, with a previous outbreak of confidence in early 2012 ultimately dashed, he listed a series of stocks which have lifted aggregate performance sharply and predicted further good news ahead.
‘We are very encouraged by the excellent returns generated by the holdings that are seeing their turnaround achieve traction,’ said Dobell.
‘Easyjet was the star performer over the past year and I think that brilliantly demonstrates what can happen when we work closely with a company’s management team and other shareholders to support the development of the business.’
‘Other successes include Pace, which is seeing the benefits of the strategic plans laid out by the new management team at the end of 2011, and Regus, which is reaping the prolonged rewards of its investments in its business
‘By its very nature, there will always be companies on the fund that are struggling in the very early stages of their recovery, however, at a broader level, I am heartened by early signs of increasing investor confidence and the beginnings of a renewed focus on company fundamentals.’
Signs of increasing corporate M&A and IPO activity were particularly encouraging he added, following a period in which few of the fund holdings have been bought out.
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