Bestinvest says
John Dodd is an experienced investor and although he has not run a fund has invested solely in Energy before we recognise that the Artemis Alpha Trust has always contained a large number of Energy stocks. Richard Hulf, although he has no direct fund management experience, has significant experience in this sector having worked for several Oil & Gas companies and advised numerous high profile fund managers. The addition of Hulf is a notable acquisition for Artemis. The fund is suitable for investors looking for a higher beta way of playing the Oil & Gas market.
This fund aims to produce a capital return in excess of the MSCI Energy Index by investing in companies worldwide that drill Oil and/or Natural Gas. The managers concentrates on investing in large, medium and small cap stocks, whereas many funds in this sector focus on large cap integrated Oil & Gas producers. Typically smaller companies have greater leverage to the underlying commodity price which therefore gives this fund greater upside potential although investors should be aware that this is accompanied by a greater level of risk.
The portfolio is relatively concentrated with around 30 stocks. Some large cap stocks will be held, partly for liquidity reasons, where the managers see value which they define as companies that are trading at a discount to proven reserves. Similarly in the small cap portion of the portfolio the manager is looking to invest in companies with some proven reserves to justify their valuation rather than just straight exploration plays. A premium is also attributed to an experienced management team with a strong track record.
John Dodd is an experienced investor and although he has not run a fund has invested solely in Energy before we recognise that the Artemis Alpha Trust has always contained a large number of Energy stocks. Richard Hulf, although he has no direct fund management experience, has significant experience in this sector having worked for several Oil & Gas companies and advised numerous high profile fund managers. The addition of Hulf is a notable acquisition for Artemis.
Both managers have invested a significant proportion of their personal wealth into the fund.