Melchior UK Opportunities Fund (MUKOF) has returned 7.91 percent, outperforming its benchmark by 3.16 percent and ranking it 6th out of 303 funds in its sector over its first six months. Over three months it has returned an impressive 14.26 percent against the benchmark of 9.50 percent.
“The disciplined process we use to find contrarian special situations has generated significant value since we launched the fund,” says Glen Pratt, the manager or MUKOF. “Stock-picking produced excess return across the entire market from AIM stocks to large caps. In addition, the Fund’s volatility has been significantly lower than many of its peers and the benchmark. Even though the Fund consists of a concentrated list of best ideas, we have a deliberate strategy to minimise risk in the fund”
“Although this is a relatively short period for comparisons it demonstrates Glen’s excellent stock picking and risk management,” says Magnus Spence, a Partner at Dalton Strategic Partnership LLP. “Since joining us Glen has been able, in a totally unconstrained environment, to combine the stock picking skills that he gained managing the Fidelity UK Aggressive Fund with the risk management of Newton where he managed 1.7billion. His approach of seeking valuation anomalies, turnaround and unrecognised growth situations has resulted in considerable out-performance of his peer group. Once Glen has built a longer track record we’ll be even better placed to market the fund more widely. Its ranking of 6th out of 303 in a notoriously difficult sector to outperform is most impressive.” Glen Pratt has twelve years investment experience and joined DSP from Newton Investment Management, where he was lead manager on 1.7 billion of UK equities, including the Newton Growth Fund (A rated by S&P) and the Newton Income Fund (A rated by S&P and AA rated by OBSR – Forsyth). He joined Newton in January 2003 from Fidelity where he managed the Fidelity UK Aggressive Fund. Under his management this fund achieved top quartile performance over four years and was rated 5 star by Morningstar.