Patrick Evershed, who in June 2002 moved to New Star after a highly successful career with Rathbones, has been equally successful with his New Star select opportunities fund. Since its launch in June 2002, it is fourth in the UK all companies sector out of 286 funds with a rise of over 30 per cent.
Over the past year or so, IFAs have been discouraged from investing in this fund as Evershed did not see too many investment opportunities, so a large inflow of money could have affected the performance of the fund during this unfavourable market period.
Evershed now believes that a number of his target stocks have fallen to a level which he now deems fair value, so he wants to raise a further £10m to capitalise on these opportunities.
New Star will now be providing access to this fund through several supermarkets as well as reverting to normal commission.
I believe that Evershed is one of the very best fund managers. He is currently rated AAA by Citywire and recently won the 2004 Lipper Citywire All Stars award for his sector.
His particular expertise is in choosing companies in the small companies sector although 6 per cent is invested in big companies and 10 per cent in mid-caps. He has been increasing the fund's exposure to the information technology and biotechnology sectors over the past 12 months as he expects economic growth to slow throughout most of the economy, partly because of falling house prices.
In these circumstances, he is investing in companies that will continue to grow because they are on the leading edge of new technologies. IFAs should take this opportunity to put their clients into this fund before the £10m runs out.