View more on these topics

Product matters

Not only did David Shapiro put his money where his mouth was when it was announced he would be appointed manager of the newly launched Collins Stewart UK focus fund in February, so did his friends and family.

Indeed, a large proportion of the fund is made up of Shapiro’s own money as well as those close to him. This is no bad thing for investors.

Shapiro follows closely Warren Buffett’s mantras when attempting to unearth value companies. Indeed, his investment philosophy could be loosely tied around the legendary investor’s most memorable quotes. This is also no bad thing for investors.

Like Buffett, the former man from Morley looks to invest in great businesses, earning good returns, available at attractive valuations. Underlying his stock selection are three precepts – quality, returns and value.

He thinks that UK household names, such as Tesco, have never been so attractively valued.

As well as food retailers, other areas that interest him are drinks manufacturers, pubs, asset management, recurring revenue plays, telecoms and distribution businesses.

He has steered away from banks, believing there are still too many unknowns, and is underweight in mining, pharmaceutical and oil companies.

His portfolio is concentrated (about 30 stocks) and looks at only the best ideas, unlike many other funds that doggedly obsess about the need to keep close to their benchmark index.

Shapiro currently has about 40 per cent in the FTSE 100 but spreads his portfolio across the market caps, with 40 per cent in the FTSE 250 and a further 20 per cent in smaller caps.

My only sticking point is the performance fees which have been applied to this fund – 20 per cent of any outperformance of the FTSE All Share. This is a disappointing trend that has become ever more common.

Darius McDermottis managing director of Chelsea Financial Services

Recommended

Polarised lenses

We are expecting the retail distribution review interim statement next Tuesday and we should prepare ourselves for a change or two from what we were told and read in Jane 2007 with the 111-page RDR first discussion paper.

A shaw thing

Annie Shaw is a freelance financial journalist
The Ant and Dec of personal finance are no more. Jason Wyer-Smith is to fly solo, leaving Scott Mowbray to look after the media relations shop at Virgin Money. The signs were ominous when Virgin sent out mouse mats to members of the financial press with just Scott’s name on as contact. Now Jace has formally announced that he is launching an enterprise to be known as 42 PR.

Peter Le Beau joins ejsSearch board

Insurance and reinsurance executive search firm ejsSearch has appointed Le Beau Visage managing director Peter Le Beau as an advisory board member.Le Beau is also a non-executive director of Red Arc, Health Claims Bureau and Exeter Friendly Society.Managing director Barbara Schönhofer says: “We are delighted to welcome someone of Peter’s stature in the life and […]

Reforming India: just the beginning

By Kunal Desai, Neptune India Fund

As global investors continue to scour emerging markets through the lens of reform potential, India shines bright. Indeed, we think it can sparkle even brighter. We anticipate India’s self-imposed 10-year ‘policy holiday’ to turn into one of the most pro-growth and pro-investment policy calendars seen in Asia in years. The Indian electorate has engineered a historic verdict. We now have the strongest Indian government since 1984, with the pro-market Bharatiya Janata Party (BJP) achieving an absolute majority for the first time in the party’s history.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com