Fund manager Mark Martin is relatively inexperienced but has made a strong start to his career on this fund. The strong performance of FTSE 250 stocks relative to the rest of the UK market in recent years has provided him with a tailwind, but his relative numbers are also attractive.
The investment universe is the FTSE Mid 250 index and the 50 largest companies in the FTSE Small Cap index. Companies entering the FTSE 100 index are phased out rather than sold automatically.
Analysis at Neptune is split into three simultaneous, parallel, research areas: economic regions, global sectors, and individual companies. The UK based team are split by sector globally, with individual company analysis tending to focus on sectors they believe will benefit from current economic circumstances.
The manager uses the global research as a filtering process, and also uses Neptune's proprietary quantitative model as a stock screen. Individual stock research incorporates a company profile and an analysis of industry trends. The manager looks at a company's competitive position, management and strategy.
In constructing the portfolio the manager balances investments between three different silos:
recovery plays, structural growth stories and turnarounds. At least 20% must be invested in each silo.