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TQ Invest removes Shah and Brough funds from Hero list

Sanjeev Shah’s £2.5 billion Fidelity Special Situations fund and Andy Brough’s £1.3 billion Schroder UK Mid 250 are among several funds that have been removed from TQ Invest’s Hero funds list.

Sanjeev Shah
Sanjeev Shah

TQ Invest is the execution-only arm of the asset manager Torquil Clark.

The Hero list is chosen by the firm’s investment committee and comprises their selection of the best 65 ideas from 364 funds identified by Sesame, the research firm, as showing potential for consistent outperformance, plus 10 “wild card” funds.

The £464m BlackRock UK fund, run by Nick Little, has also been ejected from the list, as has the £3.2 billion Aberdeen Emerging Markets fund. The latter was soft-closed earlier this month in an effort to control inflows.

Little took over as the lead manager on the BlackRock fund after Mark Lyttleton stepped down in March.

The exclusion of Fidelity Special Situations comes after it was removed from Fidelity’s own Select list in its most recent review of funds for its multi-manager buy list. Fidelity has since issued a statement defending Shah, but it accepts the fund has underperformed its peer group.

The group says in the statement: “Whilst we feel that the manager has a strong process and discipline around analysing and selecting stocks for his portfolios, the fund has performed less consistently than its peers over a rolling three-year period.

“We will continue to monitor the fund closely.”

The Special Situations fund, which was run by Anthony Bolton until Shah took it over four years ago, was also recently hit with a downgrade to one star, followed by a “sell” rating, from Bestinvest.

Bestinvest has criticised the fund over the impact its positions in financials and media have had on its performance.

Anthony Cross and Julian Fosh’s £164m Liontrust UK Growth fund was added to the Hero funds list after positive results for the financial year to March. The group’s retail operations brought in £163m in the first three months of the year, against £57m in outflows.


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