Jupiter UK Alpha U2

Investment Process

The fund invests in a concentrated portfolio of large and mid-cap UK equities. The manager believes investors are too focused on short-term company news and economic indicators, and fail to properly consider companies’ long-term prospects. He targets companies with strong business models, healthy balance sheets and unrecognised potential. His investment style is pragmatic, so unrecognised potential can include turnaround situations, deep value stocks and more expensive growth stories where he believes they can maintain performance. New ideas can be prompted by factors including: absolute and relative valuations, persistent share price weakness, poor results, new management teams or changes in economic prospects. Stock research includes both quantitative and qualitative work. The former includes analysis of a company’s historical results and its competitive position using Porter’s Five Forces. The latter includes management track record, governance and incentive arrangements. Bottom-up research is complemented by the team’s thematic views. These will never solely dictate investment decisions - stocks must be supported by strong fundamentals in their own right. Portfolio turnover tends to be very low.