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Under appreciated fund managers identified

Under appreciated fund managers identified

Peter Toogood, chief investment officer at The Adviser Centre, has nominated the three fund managers he believes are the most unappreciated by UK investors.

The first manager he nominated is James Thomson, who runs the £1.2bn Rathbones Global Opportunities fund.

This fund has returned 113 per cent over the past five years to 66 per cent for the average fund in the IA UK All Companies sector in the same time period.

Mr Toogood said Mr Thompson is "a very talented and thoroughly engaging manager.”

He said: "He has played the disruption theme superbly and remains committed to the leaders of tomorrow.

"This is a fund that you hold for the long run and re-visit every five years (if you really have to) as it should continue to compound the earnings growth. James is aware that some of the growth stocks are on giddy multiples, but points out that earnings growth supports their elevated ratings.

"The fund will inevitably experience periods of de-rating and re-rating but, in the long term, investors will benefit from his search for superior earnings growth."

The next fund he chose is Orbis Global Equity.

This is a £59.5m fund, managed by Ben Preston, which has returned 92 per cent over the past five years to 1 July, compared with 66 per cent for the average fund in the IA Global sector in the same time period.

Mr Toogood said: "An amazingly consistent and robust investment process which has been known to us for 20 plus years.

"Launched in 2014, this is a relatively new UK version of the long-running offshore fund. A blended vehicle with an intrinsic value approach, which means that high growth stocks like Amazon can be justified, as well as more traditional value names.

"As you would expect, the managers are currently struggling to find obvious pockets of value and as a result, they are relatively cautious. A superb long-term holding, which will deliver a markedly different performance profile to the global index.”

Jonathan Davis, who runs Jonathan Davis Wealth Management in Hertford, said he is preparing clients for a period of 'high single digit' inflation over the next decade, and so his focus is on investments which perform well when inflation is rising.

david.thorpe@ft.com