Bestinvest says
Former fund manager Jeremy Lang is a hard act to follow, but Fosh and Cross have made a strong start on this fund. They also have a solid track record on their other mandates, but these invest further down the market cap scale - we would like to see more of a track record in larger company investing before considering this fund for a rating.
The portfolio is focused on companies with what the managers describe as “Economic Advantage” - competitive strengths that allow them to sustain a higher than average level of profitability for longer than expected. The managers believe Economic Advantage is most durable in businesses with three categories of intangible assets: (1)Intellectual property; (2)Strong distribution channels; (3) Significant recurring business. The portfolio is selected from the 750 largest companies in the UK. Companies with durable Economic Advantage are also screened for the market’s appreciation of their potential earnings growth – the managers believe under-appreciated companies have the strongest potential for share price growth.