Bestinvest says
This fund was designed to give retail investors access to a strategy similar to that of a hedge fund run by star fund manager Roger Guy. We downgraded the fund to a one star (sell) rating following the departure of Guy from Gartmore in late 2010.
The fund aims to provide a long-term positive return, whether equity markets go up or down, by investing in European (including the UK) company shares. Derivatives will be used to help the fund achieve its objective. Long positions may be held through a combination of direct investment and/or derivative instruments. Short positions will be held through derivative positions, primarily equity swaps and futures.
The portfolio is selected through a bottom-up process and comprises:
- Strategic positions (around 60%). These will be in companies where the manager believes earnings have been materially over or under-estimated by the market. They are typically held for 3-6 months with an expected upside of at least 20%.
- Tactical positions (around 40%). These will be in companies where the manager believes there is a specific catalyst for a rerating of the share price, such as a change in management or a new product launch. They are normally held for days or weeks.
Currency exposure is typically hedged into sterling.