11th July 2013
Ben Yearsley, head of investment research at Charles Stanley Direct has put together a list of five fund managers to watch.
“We are often asked who might become the star fund managers of the future, so Rob Morgan and I have been discussing who might be contenders. It is not easy to spot the next Neil Woodford or Anthony Bolton, but there are certainly a clutch of young, talented managers for whom we believe the future is bright.”
We list them below.
Alex Savvides – J O Hambro UK Dynamic
We have been impressed with Mr Savvides’ methodical investment process driven by identifying both value and growth potential. Although this is not an income fund Mr Savvides insists each company in the portfolio must pay a dividend – or expect to do so in the next year. He believes a dividend instils a discipline in management, and they serve as a good corporate governance ‘filter’. He splits the fund into three parts: Recovery, restructuring and hidden growth. In each he aims to identify a catalyst for change and for the share price to be re-rated. Performance over the four-year life of the fund has been highly impressive, and with the fund remaining small and nimble webelieve it is one to watch.
Jacob de Tusch-Lec – Artemis Global Equity Income
Jacob de Tusch-Lec has been at Artemis for a while now, only slowly gaining recognition. However, this fund could really propel his career. Not only is it in the increasingly popular global equity income sector but it offers investors something a bit different. Mr de Tusch-Lec aims to utilise lesser-known large cap companies rather than the usual mega-caps. He also has a flexible approach and tries to adapt to changing economic conditions by altering exposure to economically sensitive areas. We believe Mr de Tusch-Lec is a highly capable manager, and with wise heads at Artemis such as Adrian Frost to help him on his way this could be a successful fund.
Rebecca Young – Neptune US Income
Neptune has a history of promoting young managers through the ranks quite quickly. Sometimes it works, sometimes not, but it is certainly a good policy that brings fresh talent into the industry. One Neptune manager we believe has great potential is Rebecca Young who works with Felix Wintle on the US team and manages Neptune US Income Fund. She targets a sustainable yield of 3.5% and has put together a concentrated portfolio of stocks she believes will significantly grow their dividends over the long term. A balanced portfolio is maintained through investing in three silos: recovery, structural growth and tactical plays, with 15 stocks in each silo. It is still early days, and the US is a tough sector in which to outperform, but we believe the fund looks interesting.
Thomas Moore – Standard Life UK Equity Income Unconstrained
Although he has only four years’ experience of fund management under his belt Thomas Moore has already won admiration for his distinctive approach and impressive performance. As his fund is in the equity income sector it is no surprise that his central philosophy revolves around dividends. Specifically, that the best performance results not from shares that pay the largest dividends but those that grow them the fastest. He is keen to spot companies in a growth phase, which are capable of increasing dividends rapidly. Rather than the traditional high yielding giants of sectors such as oil and gas, pharmaceuticals and tobacco, Mr Moore invests in smaller firms such a cinema operator Cineworld and airline Easyjet, which he considers to have greater dividend potential over the long term. It is an approach we believe could excel.
Steve Davies – Jupiter Undervalued Assets
Jupiter has always nurtured new fund manager talent, and among those coming through the ranks Steve Davies has caught our eye. Having been number two to Ian McVeigh on Jupiter UK Growth for three years he was given the chance to manage his own fund when handed Jupiter Undervalued Assets last year. Mr Davies has turned around the fund’s ailing performance with his high-conviction growth-orientated approach. Although he has had a fair wind behind him we believe he has the expertise and determination to put this fund back in the spotlight.