Axa Framlington small companies fund manager Roger Whiteoak says his lack of dependence on quantitive and analyst data speeds up his stockpicking and can leave other managers trailing.Speaking to Money Marketing, Whiteoak says: “Quant data tends to be historical, incorrect and you have to break down the statistics to work out the level of risk.” He relies more on meeting firms and cross-referencing with the three small-cap and three mid-cap fund managers on Axa Framlington’s UK companies team. He says: “I know my strategy and my fund risk-reward profile so I can make a decision to buy or sell as soon as I come out of a meeting. Other managers may take two or three weeks to decide if they are using analysts and quantitive analysis.” Whiteoak says the market volatility is producing buying opportunities. He says: “We have picked robust stocks that we have known for years so when the market fell we had a spread of stocks and sectors. “When the market was strong, we took profits from these areas and made money on oil and resources stocks. We then sold the more risky resources stocks and bought cash-positive stocks. “It has been a funny year. When the market was going up, it was difficult to pick up stocks and when it crashed there was no liquidity in small caps so it was difficult to sell anything. “Any risky stocks we are buying is because they are falling and we believe by the end of the year their prices will be going up again.” He says the original approach was to source firms with growth and pricing power because international markets were performing less strongly four years ago than the UK. “Now the reverse is happening, with UK pricing power deteriorating, government spending slowing and international markets growing faster so our strategy is to get exposure to faster growing areas with strong pricing power,” he says. The 160-stock fund, which has 260m under management, is overweight in higher-margin sectors such as healthcare, biotech, technology, aerospace and oil and resources, he says.
IFA network Alpha to Omega is reporting increases in turnover of 107 per cent and gross profit of 40 per cent at 31st March 2006 following three years of trading. The Winchester-based network more than doubled turnover to 8.1m from 3.9m, while gross profit increased to 520,000 from 371,000 in 2004 to 2005.The company, which […]
Principals of IFA firms are overwhelmingly confident about their businesses for the next one, three and five years, according to research conducted by threesixty among its 350 members.
You can often tell when a newspaper executive has come into collision with the dark forces of the financial services industry by the way his or her newspaper launches a “campaign” against a particular “sin” committed by its practitioners.
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In this short video, Richard Marwood, senior UK equities fund manager at Royal London Asset Management, outlines how he seeks to build portfolios that are resilient to short-term volatility. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and […]
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