Bestinvest says
Tim Steer previously ran a similar mandate at New Star; we believe his appointment is a positive development for unit holders after a protracted period of disappointing performance. The fund benefits from Steer's accountancy qualifications and his background as an award winning Extel rated analyst of small and medium sized companies during the 1990s - he uses these to undertake detailed balance sheet and cash flow forensics on portfolio companies.
The bulk of the portfolio will be FTSE 250 and FTSE 100 companies, though smaller companies can be included. Individual stocks are bought on a bottom-up basis, but the overall portfolio also reflects the broader macro themes of the manager.
Ideas come from the managers themselves, Artemis colleagues, external contacts and from a proprietary stock scoring system called MARKET. Stock research includes detailed analysis of company accounts – the manager favours companies with strong cashflows and is wary of acquisitions. He also requires a capable management team and typically invests only after meeting company management. MARKET is also used to check portfolio positions - this screen has a bias to a number of “growth” metrics which will be reflected in the portfolio. However, value metrics are also included with a view to performing in all market conditions. Whilst the manager believes earnings prospects drive company valuations long-term, he recognises that short term factors can also affect prices so he will also look at technical factors such as liquidity.
The fund may also include a limited number of short positions on individual stocks.