The bear market tamersLast Updated: 1:11am GMT 29/01/2008 A few fund managers consistently make money even as global stockmarkets collapse. Paul Farrow tracks them down
You need a cool head when all around are losing theirs. That's why it makes sense when choosing a fund to opt for a manager who has proved him or herself in good and volatile markets. Sadly, they are few and far between. But don't worry. To help you we have got the number crunchers at Citywire, the analyst, to unearth those managers that can ride a bear market. "The managers we have identified have demonstrated their talent by outperforming the market and their peers over the long term. Crucially, this covers different market cycles and takes into account the risks taken to generate returns," says Jonathan Miller, head of research, at Citywire. It won't surprise many to discover that Neil Woodford at Invesco Perpetual has delivered the goods, as do Anthony Nutt (Jupiter Income) and Adrian Frost (Artemis Income). But what of the others? Jim Fisher, Saracen Growth Alpha "He has experience, having been held from view when he worked at Scottish Amicable in the nineties," says Robert Burdett, the head of multimanager funds at Thames River. "We picked him up in early 2000 and held him ever since." Mike Felton, M&G UK Select It now has a portfolio of between 30 and 40 holdings with Felton looking to invest in his favourite stocks. He has the freedom to look anywhere in the British market without being constrained by any index. He is around 70 per cent invested in blue-chip stocks as part of his defensive move. "Sustained higher volatility in equities is likely as investors continue to reappraise their appetite for risk," says Felton. "As such, I have maintained the fund's defensive positioning." Andrew Dalrymple, S&W Aubrey Global Conviction He takes profits once a share exceeds 4 per cent of his portfolio. He focuses on companies with capitalisations of less than £2.5bn in developed markets. "He is on our watch list – my colleague is having lunch with him as we speak," says Burdett. "We look for catalysts and his is a new fund and a new business that is clearly a catalyst." Mark Hall, Rensburg UK Growth Mark Lyttleton, Merrill Lynch UK Dynamic Multi-managers like his ability to make early calls and he is not afraid to buy into a stock while it is falling. He has also recently been avoiding areas related to consumer issues such as house builders and retailers. Nigel Thomas, Axa Framlington UK Select Thomas describes himself as a "pragmatic and flexible'' manager, and says the secret of his success is always to cut losses and use the capital elsewhere. He invests across the board, from large caps to mid to small caps. Meera Patel at Hargreaves Lansdown, says: "We have always been a fan. He has been a little bit dull but worthy in recent years, yet he still delivers the numbers." Chris White, Threadneedle Managed Income He invests mainly in blue-chips and large caps. He also remains overweight in defensive areas of the market, including the oil, food retailing and telecoms sectors. Darius McDermott of Chelsea Financial Services says: "His managed income fund has done well in tough conditions - he is a conservative good solid manager."
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