Cherry Reynard

How two professional investors find investment trust bargains

Funds of investment trusts occupy an unusual place in the investment universe: it is usually relatively sophisticated investors (such as readers of Money Observer) who appreciate the charms of investment trusts, but those same investors are often active investors, in a position to select investment trusts themselves. Therefore, the fund of investment trusts must offer a little more.

Investment trust bargain hunter

The most important thing to look at to find a winning share

Cash matters. Anyone with a small business, or simply an unreliable friend, recognises that cash in the bank is worth more than cash owed or cash promised. Cash in the bank can be spent, invested or kept for a rainy day. For this reason, many fund managers place great emphasis on cash flow in guiding them to strong and enduring companies.

Six tips to find an active fund you can trust

In recent years, there has been an increasing focus on whether it is worth paying active fund fees. The alternative is simply to invest via index funds, which are cheaper, but come without the lure of potentially higher returns.

How to find fortress shares that will stand the test of time

Technology has driven a stake through the heart of many traditional businesses that have endured for decades but have suddenly found themselves in decline – following the launch of a new app, for example. Sectors as diverse as retailing, car production and the music business have suffered, and more sectors are in the firing line.

Why buy and hold investors should switch to a momentum strategy

Those who invest in stockmarkets are well-versed in the highs and lows they entail. However, there is always a dilemma over how long to wait for an apparently weak fund manager to come good. Have they lost their edge permanently? Or are they simply going through a bad patch? The travails of a certain high-profile fund manager in recent months illustrate the quandary for investors.

Strong returns from many of our Fund Award selections

Just in case investors had forgotten what volatility felt like, markets issued a sharp reminder over the past 12 months. It was the type of environment in which good active managers should thrive, as share price performance grew more differentiated – but there were plenty of traps for the unwary.

The US was both the easiest place to make money and the toughest to beat the index, and that was reflected in the annual performance of our 2018 fund award selections.

Innovative Finance Isas: don’t let rewards blind you to the risks

On first assessment, peer-to-peer Isas – known officially as innovative finance Isas – appear to fill a hole in the Isa market. They are hybrids that operate between the relatively high-risk/high-return sphere of the stockmarket and the lacklustre but safe zone of cash. They offer a handy route to a reliable and diversified income stream. At the same time, investors can enjoy the feeling of disintermediating those nasty banks.

Have mid-cap firms had their moment?

Medium-sized companies used to be the favoured stomping ground for active managers. Small and nimble enough to grow, but large enough to withstand the ebb and flow of the economic tide, they were seen as the sweet spot for investors. Respectable academic studies backed up this view and for many years, mid-cap-focused UK equity funds headed the pack in performance terms.