Dalton Strategic Partnership has launched the Melchior Selected Trust UK Opportunities fund, aimed a...
Dalton Strategic Partnership has launched the Melchior Selected Trust UK Opportunities fund, aimed at offshore investors.
Launched on the back of demand, the Luxembourg Sicav replicates the investment strategy of the Melchior UK Opportunities fund which invests in a concentrated portfolio of UK companies.
The funds are managed by Glen Pratt who has 13 years' investment experience. Since inception, the original fund has returned 26.86% compared with the sector average of 4.41% and a return of the FTSE All Share index of 5.58%.
Magnus Spence, partner at Dalton Strategic Partnership, said: "Glen manages a concentrated portfolio with a very fundamental style. He tries to find companies in turnaround situations or otherwise companies which he believes have been undervalued for a while but he won't invest unless he expects a return of 25% over a two-year period."
Pratt has spread his investments across UK retailers, including M&S and Sainsbury's last year, large oil companies, property developers and pharmaceuticals which he believes are undervalued. Spence added: "The fund has strong alpha potential but low volatility at the same time. It is a good core-holding for investors who want exposure to UK equities."
Spence is optimistic about the UK market, pointing out that it is very efficient in terms of transparency and that expectations of profits remain strong. He said: "Mergers, takeovers and private equity firms mean that bad companies can't languish for long. Delisting also means that supply is shrinking while demand continues."
Ramifications for advice firms
Calling for new advisers to join
Falls to 2.4%
Spent three years in the role
One of many options being 'kicked around'