The aim of the Contrarian fund is to benefit from trading quality
stocks which are temporarily out of favour, pre-empting a bounce
in the share price. Pramit Ghose, who has successfully run
contrarian type portfolios for many years, manages the fund.
The Contarian fund typically consists of 50-65 stocks with a focus
on Ireland, the UK, the US and Europe. The fund looks for stocks
with the following characteristics:
- Blue chip stocks out of favour with the market.
- Stable businesses with strong franchises.
- Expecting turnaround in share price.
- Looking for 10% – 20% bounce, then move on.
Volatility is going to remain a key feature of stockmarkets. This
means that share prices will, in our opinion, overreact to
disappointing news and fall significantly beneath their fair value.
A contrarian trading strategy allows the investor to take
advantage of these opportunities. Therefore, we believe that this
fund offers good upside potential, even in a mediocre
stockmarket environment.
There are no prizes in fund management for size. In fact, there is
a growing feeling within the fund management industry that size
can constrain performance. As a niche player, Bloxham can make
and execute investment decisions quickly which is crucial for a
trading fund.
The focus of the fund is on Irish, UK, US and European stocks and
there is no currency hedging. There is no limit on the level of
cash which can be held, and this flexibility may be used
aggressively when markets are falling.
Suitability
This style suits individuals who want their portfolio to be actively
traded but perhaps do not have the time or the expertise to do this
themselves. The style is quite aggressive, but the quality of
underlying stocks is good. This puts the fund in a medium to high
risk category.
Provider: Irish Life
- Personal Investments (Signature/Signature 2/Signature Saver)
- Personal/Executive Pensions (Complete Solutions and Navigator)
- ARFs and AMRFs / Self Administered Pensions (Complete Solutions)
- Buy Out Bonds
Provider: New Ireland
- Non Insured Group Schemes
- Self Administered Pensions (500,000 min.)
