Which is the Best Value Fund?

THE VALUE INVESTOR: The art of buying stocks which trade at a significant discount to their intrinsic value takes a trained eye. So which fund manager should you choose?

Emma Wall 27 February, 2014 | 5:16PM
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Value investing is the art of identifying undervalued assets and snapping them up before the market realises just how much their worth. While it is not a fool-proof method – sometimes stocks are cheap for a reason – if you get it right you can make serious returns.

Value investing is a bumpy ride however. Even the most famous value investor Warren Buffett gets it wrong sometimes. For that reason value investing is best left to the professionals – and there are two funds in particular worth your consideration.

In the blue corner we have Tom Dobell, manager of the Morningstar analyst Gold Rated M&G Recovery fund. Since it was launched just three managers have guided it over its 43-year lifespan. Current manager Dobell is a city heavy-weight with over a decade’s experience in picking under-appreciated stocks. Over the past 10 years Dobell has returned an average of 10% every year to investors – but it hasn’t been smooth sailing. In 2008 the fund lost 28% only to make back 41% the following year.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
M&G Recovery GBP A Acc304.44 GBP-0.61Rating
Schroder Recovery A Acc229.61 GBP-0.69Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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