Stock Picker Fund Managers for a Success in a Flat Market

Picking out undervalued stocks is the hold grail of investing - get just a couple of bets right in a portfolio and you add serious alpha. We reveal who the best in the game are

Emma Wall 4 November, 2015 | 3:00PM
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What if you could identify the best stock pickers? The fund managers who really earn their fee? Well guess what – you can. Or rather, Morningstar fund analysts can. Research reveals that the funds Morningstar Analysts rate Gold outperform their peers by 69% over an average five year rolling period.

The post-recession period of rapidly rallying markets is over – US and UK equities have been flat over the past 12 months. Finding value in these choppy sideways moving markets requires seasoned stock pickers, those managers who can deliver despite the challenging fundamentals.

Using the Morningstar Fund Screener, we have identified three funds that are Gold Rated, and have done well over the past year when market conditions have been challenging. We have also applied a value screener – selecting value biased funds invested with a value driven style, using the Morningstar Style Box.

Artemis Income

This Gold Rated fund remains an outstanding choice in the UK equity-income sector, says Morningstar analyst Chetan Modi. It has delivered

The fund features a distinguished pairing in Adrian Frost and Adrian Gosden, who have worked together here since Oct 2003, although Frost took charge here in Jan 2002. The managers share an impressive amount of industry experience and also draw upon the expertise of their fellow Artemis managers. The resources have been bolstered since Nick Shenton joined in mid-2012 to provide dedicated analytical support. 

Investec UK Special Situations

This Gold Rated fund is one of the best offerings in the sector, thanks to the manager’s consistency of approach says analyst Daniel Vaughan.

Alastair Mundy, who has run the fund since 2002, is a seasoned and talented manager who has achieved considerable success across a variety of market conditions. He uses a well-tested contrarian process where he seeks to invest in companies whose share prices are down by at least 50% relative to the market.

GAM UK Diversified

GAM UK Diversified is a strong choice for investors seeking a value-based strategy, says analyst Simon Dorricott. The Gold Rated fund stands out as having one of the most experienced managers in the category, and over his tenure on this fund, which dates back to the fund’s inception in 1990, Andrew Green has rewarded investors with strong returns.

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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About Author

Emma Wall  is former Senior International Editor for Morningstar