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Special
situations funds are the ultimate in active portfolio management, as
they tend to have a totally flexible investment mandate, which means
that the manager can go anywhere in the market where they consider there
is value.
As the name
suggests, special situations funds tend to contain a diverse range of
stocks which the manager thinks will present a good opportunity
regardless of the size or sector. The style of special situations
managers varies, with some seeking out value and some taking a more
pragmatic approach.
Our
role is to select a manager for you whose style fits in with the asset
allocation of your existing portfolio, as well as one with a good track
record, and assessing the longer-term performance. We can also examine
the performance of fund managers throughout their careers and not just
in their current jobs.
To
find out more about investing in a special situations fund, please
e-mail or contact us for an assessment of your investment position.
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A
typical value investor may choose to use five main categories of stock
selection:
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Companies in a turnaround or recovery situation.
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Companies with unrecognised growth potential, for example where growth in
a subsidiary or due to a complex corporate structure is not well
understood.
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Companies trading below asset value.
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Companies with "corporate potential", for example, which may be
takeover targets.
■
Companies that look unjustifiably cheap compared with their rivals.
Levels,
and bases of, and reliefs from taxation are subject to change.
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