By MARK HINTON 02/05/2007
The objective of Melchior North American Opportunities is capital appreciation through selective investment in North American equities. Manager Peter Kaye’s style is fundamental stock selection, targeting growth stocks with earnings catalysts yet to be recognised by the market as well as value opportunities.
The fund aims to add value through identifying inefficiencies in the US market. The team at Melchior believe that the most reliable source of inefficiencies are those that arise from investor psychology.
The fund invests across the market capitalisation range with a bias towards medium and small sized companies targeting absolute returns in a focused portfolio of 50-60 stocks. This fund could not be described as a core US holding as it will display higher levels of volatility than the average US fund, but suits investors looking to add spice to a portfolio with existing US holdings.
Peter Kaye is an experienced manager in the US and for investors seeking a multi-cap stockpicking fund using behavioural finance techniques, this fund provides diversification to our buy list.
We award the fund a 3 star rating.