Bestinvest says
This fund benefits from a strong team approach whereby it's fund manager, Tom Digenan, draws on proprietary stock research, from a focused team of career analysts with sector specialisms. Stock analysis is detailed and aims to understand the intrinsic value of a company. However, whilst the fund has had periods of strong performance overall returns have been mediocre and the manager Tom Digenan has added little value over his career. As such the fund fails to make it onto our buy list although when "value" style investing is in-vogue this fund could do well.
Investing mainly in large and mid cap US equities the investment process focuses on companies whose intrinsic value is not fully reflected in the current trading price. Intrinsic value is determined through analysis of the company's core competency, competitive advantage, management, but in particular the company's projected cash flows. Historically this approach has tended to give the fund a bias towards value stocks (companies that have been ignored or overlooked by the markets. ) and the manager does not predict short term market movements.
A team of career analysts with sector specialisms provide a list of recommended stocks in order of preference. The fund manager makes final stock decisions as well as portfolio construction. Stock and sector weightings are set after taking into account strategic themes and risk/return considerations such as market sensitivity.