Boutiques Connect | News: Will investors finally see value in ‘value’ stocks?

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  • 03 mins 32 secs

Learning: Unstructured

In this bulletin, Olga Hay looks at the market reaction to new revelations in Alexander Darwell’s boutique, why technology stocks are not all they seem and what Peter Seilern warns about in his new book.

Four key questions

Only the best will do

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Boutiques Connect News
Hello and welcome to Boutiques Connect News Update.

In this bulletin: find out how the market reacted to Alexander Darwell’s boutique taking charge of European Opportunities Trust from Jupiter, why you should be careful with technology stocks and what Peter Seilern warns about in his new book.

But first, the decision by the board of the European Opportunities Trust to move from Jupiter to boutique Devon Equity Management is being rewarded by the market. Since mid- November when the contract shifted, the discount on the shares has narrowed from 7.7 to 1.5%.
But the change is not quite as radical as it seems. The portfolio is still run by Alexander Darwell, who left Jupiter to set up Devon. And his investment philosophy and process remain unchanged.

Following Andrew Vaughan's recent appointment as manager of the Free Spirit Fund at Sanford De Land, my colleague Mark Colegate sat down with him to find out more about his investment process. (SB)

You will be able to watch the full interview with Andrew Vaughan later on our channel.

Alasdair McKinnon, manager at the Scottish Investment Trust is asking, almost a rhetorical question: when will investors finally see value in ‘value’ stocks? He believes the pendulum will eventually start to swing back, and technology companies could be the first in the firing line.

Well, one person you should never mention value investment to, is Peter Seilern. The growth manager and founder of Seilern Investment Management has just written and published: Only The Best Will Do. His book argues past performance is a good indicator to the future, higher risk does not mean higher return and diversification is a distraction from the main purpose of investing.

You can find links to some of these stories below our player.

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Amati Global Investors

Specialists in small and medium-sized companies, Amati Global Investors was established in Edinburgh in 2010 with the objective of giving investors exposure to dynamic growing areas of the market. We aim to curate diverse portfolios of carefully analysed businesses capable of performing in a variety of market conditions. Independent and committed to active management, we have created an environment that enables our investment teams to work together effectively, focusing on making good investment decisions for our clients.

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Blue Whale Capital

Blue Whale Capital LLP is a London-based boutique asset management firm, co-founded in 2016 by Peter Hargreaves and Stephen Yiu. The firm is committed to delivering significant outperformance for investors. The LF Blue Whale Growth Fund is the firm’s flagship Fund. It is a long-only global equity fund, focussing on large-cap stocks in developed markets., investing into 25-35 stocks. The five-member investment team, led by Stephen Yiu, embraces a high conviction, valuation-driven approach to stock selection. All research is independent and conducted in-house, with priority given to internal financial modelling and proprietary valuation metrics.

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Chelverton Asset Management

At Chelverton we believe in doing things properly. We invest in proper companies. That do proper things. Managed by sensible people. For intelligent investors, who care. Founded in 1998, we are a boutique asset management business with a specialist focus on investing in sub-FTSE 100 equities and unquoted small and medium-sized enterprises (SMEs).

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Devon Equity Management

Devon Equity Management was set up by top-performing European fund manager, Alexander Darwall, in November 2019. At Devon, Alexander continues to apply his high conviction stock-picking investment style in the management of a FTSE 250 investment trust, European Opportunities Trust PLC, a European equities portfolio which he has managed since launch in November 2000.

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Kennox Asset Management

Kennox is an independent global equities investment manager based in Edinburgh, Scotland. Our sole focus is the Kennox Strategic Value strategy, a high conviction portfolio launched by our investment team in 2007. We are active value investors and think only long-term. Our independence gives us the genuine ability to do this – a key advantage in a market driven by often counter-productive short-termism. Our straightforward but highly focused approach leaves us free from unnecessary distractions, and ensures that we are optimally placed to deliver attractive, risk adjusted, long-term investment returns. Naturally we are investors in the strategy.

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Sanford DeLand

Sanford DeLand Asset Management (SDL) was established in March 2010 and manages the UK Buffettology Fund and the Free Spirit Fund. Unlike many City asset management firms, over 40% of the company's share capital is owned by the directors of the business.

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Seilern Investment Management

Seilern Investment Management is a London-based asset manager that provides quality growth investment strategies to pension funds and other institutional investors including family offices and fund of funds. For the past thirty years, we have been focused on delivering superior returns to long-term investors, through a range of high-conviction, low-turnover equity portfolios, which are rigorously researched by our investment team. We aim to identify quality businesses that have a long-term sustainable advantage and predictable growth. The Seilern fund range includes global, US and European equity portfolios.

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SVM Asset Management

SVM was established in 1990 on a straightforward premise: We wanted to create an environment where talented investment professionals would have the flexibility to run funds to the best of their ability. Our focus is on managing equity funds through exhaustive fundamental research.

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The Scottish Investment Trust

At The Scottish, our experienced team adopts a high conviction, global contrarian investment approach that clearly distinguishes the Company from our global investment trust peers and from passive investment products. The contrarian approach aims to profit by investing in carefully selected, but unfashionable, companies which appear undervalued as they are overlooked by other investors who prefer the comfort of investing with the crowd. As an independent investment trust, The Scottish is able to take this differentiated view in the long-term interest of shareholders. Our closed-ended fund structure allows us to be patient with our investments.

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