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Hollyman aims for the stars with dynamic UK mid-cap fund

Global Asset Management has established the GAM star UK dynamic fund for new investment director Ross Hollyman.

Hollyman joined GAM in August. He spent 12 years at JP Morgan Fleming, where he had been a fund manager since 1997.

The GAM Star UK dynamic fund is a Dublin-based Ucits containing between 50 and 100 stocks that represent Hollyman&#39s best ideas. The stocks are selected on a bottom-up basis according to three factors – positive momentum where earnings&#39 forecasts are being revised upwards, low valuation and quality earnings – rather than profit forecasts and speculation about the economy.

Around 1,000 stocks will be screened to identify suitable stocks. Hollyman will look at positive momentum among companies with low valuations because investors tend to underestimate these companies. In his view, the more popular stocks that are expected to perform well tend to be sold sharply when their share prices fall. Meanwhile, less fashionable stocks of which the market has low expectations may pleasantly surprise investors.

Hollyman will also assess a company&#39s cashflow and its use of capital as part of his assessment on quality earnings. Many of his chosen stocks are likely to be small or mid-caps.

This fund&#39s focus on small and mid-caps may achieve a good level of return for investors as these companies tend to be most affected by the domestic economy, which is showing signs of improvement. However, if interest rates continue to inc-rease after the recent rise, this could have a negative impact on the growth prospects of some companies.

According to Standard & Poor&#39s, the GAM multi-UK fund is ranked 37th out of 144 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to November 3, 2003.


SRB launches online service for IFAs

The Special Risks Bureau is launching an IFA online service with Webline. The service will allow Webline&#39s 9000 advisers to transact impaired lives business online.

Rate rise sees dip in home asking prices

The housing market has cooled significantly since the Bank of England increased base rate to 3.75 per cent earlier this month, according to property website Its November house price index reveals that asking prices have dipped by 0.1 per cent after rising by 3.3 per cent last month, leaving year-on-year house price inflation at […]

Cazalet hits out at &#39crazy&#39 spending by life firms

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750 advisers pass the CII&#39s new savings and investment exam

Over 750 advisers have passed the CII&#39s second sitting of its new training module which focuses specifically on savings and investments. This brings the total number of advisers that have passed the exam to 1,447, with 759 passing this time around and 688 successful candidates at the initial sitting of the exam in April. The […]

Neptune video: Indian valuations and Modi’s pro-investment agenda

Kunal Desai, Head of Indian Equities, discusses his expectations for the Indian market and highlights the key indicators that he is watching for 2015.

In the video, Kunal addresses:

• Indian equity valuations and the importance of stock selection in gaining exposure to the earnings upgrade cycle

• The BJP’s strengthening ambition in its pro-reform, pro-investment agenda


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