River and Mercantile UK Recovery Fund B Inc
New for 2018. Buys shares at fire-sale prices
Hugh Sergeant, manager of R&M UK Equity Long Term Recovery since it launched in 2008, has an impressive track record over around three decades of investing.
As the name suggests, Sergeant, who is head of UK equities at River & Mercantile, looks for recovery stocks, where good businesses are currently experiencing below-normal profit levels that are depressing their valuations.
To warrant inclusion in the portfolio, a company must have capability to help itself out of this predicament; the manager will add to the fund's holdings at fire-sale prices in volatile times.
This increases the possibility of long term capital gains, as well as a performance profile that deviates significantly from the benchmark FTSE All-Share index.
The investment team has developed an individual philosophy and process called 'PVT': potential, value and timing. It is this quantitative process that underpins all of their investment choices. The portfolio has 230 holdings, which adds a large amount of diversification and reduces stock-specific risk. However, the nature of the fund is to find stocks that have been beaten up by the market and, therefore, sentiment could continue to go against them.
As a result, investors in this fund should expect to encounter a bumpy ride from time to time.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|HSBC Holdings PLC||4.47 %|
|BP PLC||3.88 %|
|Royal Dutch Shell PLC B||3.51 %|
|Lloyds Banking Group PLC||2.77 %|
|Standard Chartered PLC||2.01 %|
|Rio Tinto PLC||1.95 %|
|BHP Group PLC||1.89 %|
|Prudential PLC||1.88 %|
|Barclays PLC||1.55 %|
|Anglo American PLC||1.43 %|
|United Kingdom||73.97 %|
|Financial Services||24.89 %|
|Basic materials||11.68 %|
|Consumer Cyclical||10.81 %|
|Consumer Defensive||6.55 %|
Hugh Sergeant graduated from the London School of Economics. He joined Gartmore in 1987 as a UK equity graduate trainee, researching a number of sectors and managing institutional funds before leaving to join Phillips & Drew in 1990. He became Head of Smaller Companies in 1997. In March 2000 Hugh was promoted to Head of UK equities and Chairman of the UK Equity Committee. Hugh joined SG Asset Management in October and is a member of the UK equity team.
Data provided by Morningstar.
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