Gartmore's new multi-manager range is heavily backing the recently launched Cazenove fund run by Neil Pegrum.
Four Gartmore funds of funds – UK high alpha strategy, global high alpha strategy, active strategy and balanced strategy – have taken strong positions in the Cazenove UK dynamic fund based on Pegrum's stockpicking credentials.
Behind the selection is a belief that stockpickers will be the fund managers most likely to outperform the market.
The cautious strategy fund, which was one of the first funds to enjoy the extra flexibility of the new FSA investment rules and attracted attention for its ability to invest in property and heavily in cash at the managers' discretion, has taken positions in property funds managed by New Star and M&G.
The active strategy fund has invested heavily in the JPMF Japan fund run by David Michinson, which also forms part of the balanced strategy and global high alpha funds. Michinson moved to Tokyo to manage the fund earlier this year and many fund of funds managers have been studying his performance.
Head of multi-manager Bambos Hambi says: “We have known Neil Pegrum for some time and have high regard for his stockpicking ability. He built an impressive long-term track record at M&G and Insight and in our view is more than capable of meeting our performance expectations for the Cazenove fund.
“We have kept in close contact with Michinson since his move to Tokyo with JPMF. We are now confident that he has all the necessary resources at his disposal to unlock value among restructuring Japanese companies to produce further outperformance.”