Bestinvest says
This fund gained a following when it was managed by Tim Steer under the New Star brand. In 2009 it was acquired by Henderson and placed under the stewardship of Stephen Peak, for many years the manager of the TR European Growth investment trust. Peak has added value over his career, but his investment style can lead to periods of wide divergence from the benchmark. The UK All Companies peer group is very competitive, and we advise that investors consider one of our recommended funds in the sector.
The investment universe includes UK companies of all sizes and the portfolio can also include some overseas stocks. Ideas are derived from a variety of sources including other Henderson managers, company meetings and the manager’s network of broker and analyst contacts. Peak describes himself as a contrarian, i.e. he likes companies that are out of favour with the market. He is attracted to stocks by a variety of characteristics, including: Recovery potential; Deep discounts to intrinsic value; Unrecognised assets (e.g. undervalued divisions); Restructuring situations (e.g. cost-cutting); Management changes; Underappreciated by the market (poorly researched); Takeover candidates.
The research process combines an assessment of a company’s external environment (e.g. stage of the economic cycle, strength of its competitors) with analysis of the individual business strategy. For a stock to enter the portfolio the manager must see a minimum 25% upside over 2 years.