Anthony Bolton, manager of Fidelity's Special Values investment trust, has made a name for himself by going against the grain buying undervalued shares with recovery potential.
And this year looks like it will be no different, says Richard Lander in The Daily Telegraph. While the rest of the market is nervous about consumer-related stocks, Bolton now says he thinks they look cheap. And while the media sector may look miserable to most of us, it accounts for 14% of Bolton's fund, thanks to the fact that share prices in the sector are at their lowest relative to the rest of the market since 1991.
He is just as contrarian on the market as a whole. Most managers are pretty bullish but Bolton argues that, while it still has some bang left in it, the current run is near its end.
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"We are now 33 months from the bottom and I think we are in the late stage of this bull market. There have been 12 bull markets over the past 40 years and the average has lasted 25 months. Only two have been longer than the current one," says Bolton.
Bolton has "one of the most enviable records in the City", says The Sunday Times. He was one of the first to call the bull market in June 2003 and over the past five years has delivered growth of 109.7% for his trust. Preparing his trust for the "often very good" last phase of the bull market, he has been moving into blue chips, such as Tesco, BG and BP. These, he says, offer greater security and better value at the moment: "speculative, low-quality companies will take the hit when markets top out". Note that Bolton is due to retire at the end of 2007.
Contact: 01732-361 144, www.fidelity.co.uk
Fidelity Special Values investment trust top ten holdings
Name of holding % of assets
BP 4.8%
BG Group 4.7%
Standard Chartered 3.8%
Statoil 3.6%
Cairn Energy 3.5%
Roche Holding AG 3.4%
ITV 3.2%
British Land Co 2.8%
GlaxoSmithKline 2.5%
Hilton Group 2.2%
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