Special sits have a bumpy bear ride

Few fund managers would describe their process as 'investing in disappointment' but that is how Derek Stuart of Artemis characterises special situations funds. His strategy is to buy into sectors and shares that are temporarily out of favour with the market, perhaps because of a fall in share price or a change of management. It is a contrarian stance that, if it works, should allow him to buy into quality stocks at a low price. As such, it is hardly surprising that within the UK All Companies peer group special sits portfolios have produced a set of risk and reward characteristics ve...