BlackRock's Mark Lyttleton should be ecstatic. Over the past 12 months, his UK Absolute Alpha Fund has returned 7.5%, against a 15% drop for the market. But instead of slapping his face on billboards across the country, the 37-year-old would rather "just plod along quietly", doing his best to continue making people money. "We'd like to under-promise and over-deliver," he tells The Sunday Times, "rather than shout from the rooftops about how great we've done."
While most of his positions are long, Lyttleton can also short stocks like a hedge fund only without charging the hefty performance fees. He "has put the arguably overpaid and over-rated hedge fund community to shame with his market-neutral UK Absolute Alpha", says Rob Pemberton of HFM investment on IFAonline.co.uk.
So what does he like now? Despite a recent fallback, he is bullish on oil, hence his holdings in Tullow Oil and Sibir Energy. "Our view (is) that the oil price will remain structurally high for the next few years due to supply/demand imbalances," he tells Investment Week. Another top holding is weapons and aviation giant BAE Systems. "BAE is very large firm with a very visible order book, good cash flows, and is quite attractively valued," he tells Thisismoney.co.uk. Aiming to deliver a steady 8%-10% return every year, "if you are nearing retirement [the fund] could be an excellent way to give your pension some defence against falling markets", says Mark Dampier of Hargreaves Lansdown.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Contact: 0800-445522
BlackRock's UK Absolute Alpha Fund top holdings
Name of holding - % of assets
William Hill - 1.70
BAE Systems - 1.70
Imperial Tobacco Group - 1.60
Friends Provident - 1.50
Dolphin Capital Investors - 1.40
Vodafone Group - 1.30
Hammerson - 1.20
Tullow Oil - 1.10
SevernTrent - 1.10
Sibir Energy - 1.00
-
Trouble brews in B&M as bargain shops take a hitOpinion Once a stock market darling, B&M's share price has slumped. What has gone wrong for bargain shops?
-
US and China reach a ceasefire in their trade war after talks in LondonThe US and China's trading relationship – the most important one in the global economy – is back on track. Will the truce last?
