Finding undervalued companies that are yet to deliver on their potential is the aim of ES R&M UK Recovery fund. Manager Hugh Sergeant holds approximately 300 of these out of favour companies, where he believes the management have the capability to turn performance around. Hugh has a wealth of experience at his disposal, with a track record of beating the index over three decades of investing. We like that Hugh looks to add to his holdings at almost fire-sale prices in volatile times, which further increases the possibility of long-term capital appreciation.
What’s covered in this podcast:
- How the fund has managed to outperform when its style has been out of favour [0:20]
- Why value strategies benefit from having many holdings but growth strategies are better with fewer, higher conviction holdings [3:43]
- If the reopening trade has already played out or there is more to come [7:12]
- Why the manager has recently invested in Fidelity China Special Situations and Baidu [9:50]
- Why sector bias has left the UK stock market unloved by good value [13:31]
- Why the UK economy is more robust than people think [15:45]
- The best stock in the portfolio this year [17:12]
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