Back the ballsy fund managers

Brave fund managers who follow a focused strategy are rare. David C Stevenson looks at two examples in the investment trust world.

I'm often quite dismissive of active fund managers. Most fail to beat their benchmarks and overcharge for doing so. But I do believe that ballsy managers who are willing to take risks can outperform by using very focused stock-picking strategies. These "properly" active managers don't run closet trackers, stuffed with a huge range of stocks. Instead, they pick a few stocks carefully, and sit tight.

Such managers are rare but the good news is that there are a disproportionate number of them within the investment trust world. Two funds in particular have caught my interest of late. Both have very focused mandates, good track records and both have recently raised a decent amount of capital.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
David C. Stevenson
Contributor

David Stevenson has been writing the Financial Times Adventurous Investor column for nearly 15 years and is also a regular columnist for Citywire. He writes his own widely read Adventurous Investor SubStack newsletter at davidstevenson.substack.com

David has also had a successful career as a media entrepreneur setting up the big European fintech news and event outfit www.altfi.com as well as www.etfstream.com in the asset management space. 

Before that, he was a founding partner in the Rocket Science Group, a successful corporate comms business. 

David has also written a number of books on investing, funds, ETFs, and stock picking and is currently a non-executive director on a number of stockmarket-listed funds including Gresham House Energy Storage and the Aurora Investment Trust. 

In what remains of his spare time he is a presiding justice on the Southampton magistrates bench.