Eden Financial UK equity fund manager Leigh Himsworth says he is avoiding pharmaceuticals in his new UK select opportunities fund.
Last week, Eden launched the fund for former Gartmore manager Himsworth.
It will typically have around a third in FTSE 100 companies, a third in FTSE mid 250 and a third in small caps. It will hold between 40 and 60 stocks and no stock will have more than a 5 per cent position. The fund launches with seed money of £10m and the average market capitalisation of the companies invested in will be £4bn.
Himsworth says he is avoiding pharmaceuticals in the short term as they have rebounded strongly during the market volatility in August. He says: “The problem with pharmaceuticals is that the large caps are the only investable companies. There are only a few companies I can look at and I am trying to run diversified portfolio positions. I might end up drifting down the cap scale as it is easier to add value with smaller companies with less analysts covering them.”
Himsworth adds that while he is avoiding UK banks, he sees value in asset management companies as they have cash reserves, 5 per cent yields and there is consolidation in the industry.
Chelsea Financial Services managing director Darius McDermott says: “Himsworth had a very good track record at Rensburg Sheppard and Royal London and went in to resuscitate the Gartmore portfolios but his performance was disappointing. However, his long-term record is good.”