Transformed companies displaying momentum and top-quality growth
Alex Savvides, manager of Jupiter UK Dynamic Equity Fund, highlights three companies as he tells us where he'd put his money


Market commentators like to pigeonhole equity investors with simple terms such as active, passive, contrarian, value, growth or momentum. This makes things unnecessarily complicated as most people are investing for either value or growth.
Our approach is different. We are business-transformation investors focused on management and strategic change within good companies. We back strategies to make firms more relevant, profitable, cash-generative, consistent and more highly valued.
Business transformation could be described as a value or turnaround style, but in practice it is so much more. It starts with value recovery, but thrives on value creation. When executed well, the process begins with the most contrarian of value mindsets and ends with the most sought-after stock market characteristics of them all: momentum and quality growth. The trick is judging which value stocks offer the right characteristics and when to hold on for both.
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
Successful historic examples of this approach from our Fund include 3i Group, which we backed over a full transformation for 15 years between 2009 and 2024, and Rolls-Royce between 2021 and 2024. Here are three more recent examples.
Healthy returns from medical devices
Convatec (LSE: CTEC) is a medical device and products company with a market value of £5 billion. It boasts large market shares in global ostomy, incontinence, diabetes and advanced wound care. After years of underinvestment and short-termism, new managers have restructured the business in the past five years and put customers and products at its heart.
Research and development (R&D) expenditure rose from 2% to 6% of revenue. The new product pipeline has never been better and has helped drive revenue growth from 2% in 2019 to 8% this year. The growth rates appear sustainable and are underpinning a margin recovery towards 25%.
Babcock International (LSE: BAB) is a £2.5 billion defence and engineering services business. Prior management for many years pursued an acquisition-led growth strategy that lacked capital and financial discipline, leading to cash-flow problems and balance sheet constraints. David Lockwood and David Mellors were appointed CEO and CFO respectively in 2020; both had backgrounds involving transforming firms in the defence and engineering industries. They undertook a systematic restructuring to focus on core services and businesses, the sale of non-core assets and an internal cost-saving and cash-flow management strategy. This repaired the balance sheet by reducing debt and improving working capital. It also provided money for reinvestment in core assets, leading to more focused growth. Sales expanded more quickly at higher margins and the long-term order book grew.
Team17 (Aim: TM17) is an Aim-listed independent games developer and publisher, with an established record and a strong brand. The shares have declined since Covid as the boom in gaming attracted capital into the sector and fuelled high valuations.
Again, there is new management with strong industry skills executing a more focused strategy around the deep and valuable back catalogue and first-party independent games growth. The balance sheet has a net cash balance of £50 million and the stock is on ten times earnings, with growth now recovering.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex has contributed to MoneyWeek’s share tips in the past. He is the manager of the Jupiter UK Dynamic fund. He became the first internally developed Fund Manager to launch a new and UK investment process at JOHCM when he launched UK Dynamic in 2008. Alex has a Securities Institute Diploma and he has a Bachelors in Politics from the University of Nottingham.
-
Is investing in AIM still worth it after IHT clampdown?
HMRC expects to rake in £110 million a year from upcoming inheritance tax changes on AIM shares. The tax relief will be cut from April 2026, meaning you could find yourself paying 20% in inheritance tax.
By Katie Williams
-
AI in finance: how is technology changing financial advice?
There are huge opportunities for AI to improve and democratise financial services, particularly financial advice. But is the regulatory environment ready for AI to become mainstream in finance?
By Dan McEvoy
-
LendInvest: a promising fintech firm going cheap
Opinion LendInvest has made some mistakes in the past, but it’s now primed for growth, says Rupert Hargreaves
By Rupert Hargreaves
-
The star small and mid-cap stocks income investors have overlooked
Opinion Thomas Moore, senior investment director, Aberdeen, highlights three company stocks as he shares where he would put his money
By Thomas Moore
-
Falling revenues and mounting debt spell trouble for Jumia Technologies
Struggling African e-commerce platform Jumia Technologies looks headed for the exit, says Dr Matthew Partridge.
By Dr Matthew Partridge
-
Chemring Group: an explosive investment opportunity in defence
European states are raising their military spending, and Chemring Group looks well placed to profit
By Rupert Hargreaves
-
Best of British bargains: cash in on undervalued companies in the UK stock market
Opinion Michael Field, Chief Equity Market Strategist, EMEA, Morningstar, selects three attractive UK stocks where he'd put his money
By Michael Field
-
PZ Cussons share price down 75% in last decade – why it's one to watch
Opinion Once-strong consumer-goods business PZ Cussons is out of favour with the market. That spells opportunity for investors, says Jamie Ward
By Jamie Ward
-
Cash in on the biotech sector with specialist trust BioPharma
Opinion BioPharma has an attractive niche in lending to asset-rich biotechnology companies
By Rupert Hargreaves
-
Three top-notch Taiwanese companies cashing in on the advent of AI
Opinion Eric Chan, investment director and co-manager of the Aberdeen Asian Income Fund, highlights three potential Taiwanese winners in the technology industry
By Eric Chan