Bestinvest says
Jenny Jones has over 25 years' experience investing in US companies. Her fund benefits from investing in a variety of stock types, which should enable it to perform throughout a market cycle. Historically it has offered relatively strong downside protection characteristics, partly due to the “steady eddie” stocks held in the portfolio, though it can underperform strongly rising markets. We continue to rate Jones as a manager - the star rating was reduced due to the fund's soft closure.
The investment approach for this fund is identical to the existing Schroder US Small Cap fund which is also managed by Jenny Jones and her team with the exception that it invests mainly in mid cap companies, although there will be some overlap between the two. The portfolio structure is built primarily through bottom-up stock selection. The final portfolio is usually a combination of turnaround situations (0-20%), mis-priced growth opportunities (50-60%) and steady earners (20-50%). Invariably these companies will have a strong market position, financial strength (with a particular emphasis on cash-flow) and the ability to grow their earnings at a sustainable rate. The fund manager avoids fashionable, high-flying stocks, devoting more time to researching under followed and misunderstood companies on reasonable valuations. Stock ideas are sourced in-house and from third parties.