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Taube-charged

Nils Taube has managed institutional and retail funds since 1969 and has built up a track record of consistent long-term outperformance in the global equity markets, delivering compound annual returns of between 14 and 15 per cent over 38 years. This means that if you had invested £10,000 with him in 1969, it would now be worth in the region of £1.5m.

After being senior partner at stockbroker Kitcat & Aitken, Taube became manager of quoted portfolio investments at J Rothschild Group and later founded THS Partners. He decided earlier this year to start on his own and launched the S&W Taube global fund, in April. It has so far shown a profit of 3.6 per cent to September 20 while most funds have lost between 3 and 5 per cent in this period.

Taube has invested heavily in the oil and commodity sectors and, anticipating the recent market turmoil, has been buying gold shares, which now account for 12 per cent of the fund, and gold bullion exchange traded funds, which make up 8 per cent. He also holds about 33 per cent in energy stocks.

The fund is underweight in commercial banks, diversified financials and consumer discretionary sectors and avoids firms which rely on credit, no matter how sound the investment may appear on paper. Fifteen per cent of the fund is liquid, which allows it to take advantage of investing in shares which have fallen too far.

Taube sees the present euphoria of share buying after the Fed cut in interest rates as temporary and believes that investors will start selling shares again shortly.

This fund should be an outstanding performer and, whatever the state of world stockmarkets, Taube should be able to make money for investors. It is an ideal investment for bigger growth portfolios and all long-term investors. It is a strong buy in the current climate.

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