Bestinvest says
The theory behind the fund is extremely interesting and in many respects cuts to the heart of many important issues such as momentum, consensus and timing. There have been extended periods where the fund has performed very well, amongst the top in the peer group. However are concern is the performance of the fund at turning points in the market.
Brokers tend to extrapolate the current macro environment and focus on the relative strengths and weaknesses of companies in the same sector. For investors who are confident that they can actively manage their exposure this fund is nevertheless a good option.
At the most simple level this fund aims to beat the benchmark by implementing broker recommendations. Brokers' performance is monitored and those that under perform are changed. GLG have developed a process so that attempts to establish trends and patterns between different brokers, some of these variables include age, experience, location and gender. Decisions regarding the prevalence of each broker and weighting of stocks use the output from this analysis. An internal system atllows brokers to compare their performance against peers.
Volatility should naturally be controlled by the large number of stocks in the portfolio but also their are sector constraints +/-5% to the benchmark and +/-10% country constraints.