They have just launched the Europe focus fund managed by Pendock, who had an outstanding stockpicking record when he was with Bedlam from June 2005 to May 2007, being one of the top European managers over that period.
He believes that restructuring in Europe will lead to much higher profit margins and this trend will spread to other European countries.
The recent sharp correction in markets has uncovered deep value and defensive stocks which are trading on very low multiples with well covered dividend yields, higher in some cases than bank deposits. The continuing slowdown is likely to lead to further rate cuts which again will help many European companies.
This focused stock-picking fund is likely to continue identifying deep value in sectors where the sell-off has been indiscriminate. Even one or two financials offer excellent valueat these levels.
Many European companies are first-class, selling products into growth areas such as health and emerging markets infrastructure development. Some of these companies are restructuring as well as exhibiting defensive revenue streams.
Pendock and Jones conduct their own research and favour stocks with compelling stand-alone valuations and growth potential. They never invest in stocks with less than a 20 per cent upside to fair value and always sell at their target prices to make way for new ideas.
This new European fund is one that every investment adviser should consider and I believe that, despite the overall market, it will be well up among the winners.