JO Hambro Capital Management is keeping its eye on the stockmarkets critical list to spot recovering companies for its UK Recovery fund.
The fund is aimed at experienced medium-risk investors looking for growth with some income and is one of four new open-ended investment companies (Oeics) that JO Hambro Capital Management is using to break into the UK Oeic market.
UK recovery will invest in a portfolio of up to 40 companies in the UK, with no more than 5 per cent of the fund in one company to spread the risk. All of these companies will have recently been in financial trouble and will be divided into two types. The first are companies that have been hit by events outside their control, such as British Energy, which was hit by the fall in energy prices. The second are companies hit by management failure, such as Thorntons, Laura Ashley and Marconi.
Led by Max King the fund team will look at changes in the business environment, as well the kind of management changes and long-term strategy that could lead to recovery in the medium term before investing in them. King has been a director at JO Hambro for the past four years, managing the capital opportunities and Piccadilly growth investment trusts. Before working for JO Hambro he was chief investment officer at Finsbury Asset Management.
According to Standard & Poors the Piccadilly growth fund is ranked 12 out of 15 funds, based on £1,000 invested on a mid-to-mid basis with gross income reinvested over one year to October 15, 2001. The JO Hambro capital opportunities fund is ranked 20 out of 24 funds, based on £1,000 invested on a mid-to-mid basis with gross income reinvested over three years to October 15, 2001.