Bestinvest says
Argonaut is a boutique investment house that revolves largely around two fund managers, Barry Norris and Oliver Russ, that specialise in European equities. The managers are therefore highly incentivised to ensure the success of the business.
Russ manages the European Income which, like most Income funds, will have strong style biases towards companies and sectors that pay high and consistent dividends. This will lead to periods of under performance due to this style bias. However over the long term this should not be an issue and the compounded dividends should add significantly to the investors return.
The Fund is not constrained by any index weightings and does not concentrate on any particular country or sector but invests from a broad range of stocks without regard to market capitalisation. Typically it will consist of 30-50 stocks that have good yield characteristics.
Resolution use a quantitative screening system call JASON that ranks the universe of investigable stocks from 1 to 500 for each of the four metric screening factors: value, momentum, growth and quality. This process is used for idea generation and seeks to identify mis-priced opportunities. The subsequent portfolio is based on the managers qualitative assessment of, rather than macro, data.
The fund may invest in companies that are headquartered outside Europe but generate income within the continent. For liquidity purposes the fund may also invest in American and Global depository receipts.