Fund Objective

The fund’s investment objective is to achieve capital growth for investors through investment in companies that have suffered a severe setback. The fund invests primarily in UK quoted shares. The investments are selected from those companies that have suffered a severe setback in terms of profits or share prices, but where the management and the prospects are believed to be good. Investment will be in directly held transferable securities. The fund may also invest in collective investment schemes, derivatives, warrants and money market instruments.

View on Past Performance

The aim of the fund is to provide capital growth by selecting out-of-favour companies that we believe have good longer-term prospects. Stockmarkets often take a short-term view on companies, swayed by recent news flow, and this can often result in fundamentally sound companies being underpriced.We, however, take a longer-term view on companies and, having completed a rigorous assessment of earnings potential, will look to invest if we can identify an underpriced company that we feel has financial strength and a sound business model.

Future Expectations

Specifically, we look for recovery potential - companies that do not seem to be achieving their potential profitability at present, but with clear signs that management is focused on turning this around. We believe that by taking a more contrarian view in the short term, these types of companies can offer investors strong opportunities over the long term.

Fund Details