Since taking over the Henderson UK Capital Growth fund in February 2001, Richard Prew has structured...
Since taking over the Henderson UK Capital Growth fund in February 2001, Richard Prew has structured it as a portfolio for all market conditions.
In February 2001 he inherited a 115-stock large-cap growth portfolio with 35% exposure to tech, media and telecoms, almost a year after the new economy bubble had burst.
It now has 67 stocks and he describes the portfolio as far less style conscious than it was.
Prew's first job was to reduce the number of stocks he held in each sector down to those he really valued.
Then he reduced the large-cap element so that the primary aim of his stockpicking is outside the FTSE 100.
He now looks to have a 2.5 times All-Share benchmark weighting in mid and small caps in most market conditions.
Another stockpicking portfolio, Mark Hall's BWD Rensburg Aggressive Growth fund, has topped the UK All Companies sector for much of the past 12 months.
Hall said the 40-stock portfolio is broadly split in two sections, two-thirds in companies bought on a two- to three-year view and the remaining third in shorter-term trading opportunities based on prevailing market themes.
While the two to three- year stocks are bought to drive the fund's longer-term performance, Hall said a small group such as BWD Rensburg cannot afford short-term underperformance in commercial terms and more opportunistic purchases should serve as a performance kicker.
For detailed analysis on both portfolios, see the January issue of Investment Strategies.
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