Best and worst performing funds in February

Best and worst performing funds in February

A pair of tiny UK equity funds have outperformed some of the giants of the industry to top the performance charts in February.

The £73m Cavendish AIM fund, which invests in shares listed on the Alternative Investment Market (Aim), and the £129m Cavendish Opportunities fund, which invests in UK Small and Mid Cap shares, returned more than any other fund across all Investment Association (IA) sectors during the month.

Data from FE Analytics shows the Cavendish AIM fund returned 11 per cent in February to be the top performing fund, while the Cavendish Opportunities fund returned 7.4 per cent to be the next best performer.  

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Both funds hold an energy stock that gained over 25 per cent in the month, leading to Ben Yearsley, a director at Shore Financial Planning, claiming "stock specific reasons" had been behind the strong performance.

The £214m JP Morgan US Smaller Companies fund, managed by Eytan Shapiro, was the next best performer.

Conversely, the three worst performing funds were all absolute return mandates.

The worst performer of the lot was BMO Global Equity Market Neutral, which lost 8.7 per cent, while City Financial Absolute Equity and and Odey Financial Absolute Equity lost 5.3 per cent each.

Mr Yearsley said the funds may have been "caught out by the positive markets last month".

The best performing market during the month was the Euro Stoxx Index of European shares, which returned 3.8 per cent

The FTSE All Share index returned 1.6 per cent during the month, while the FTSE 100 added 1.54 per cent.

Funds  - February 2019 (top ten)

Return %

Cavendish AIM


Cavendish Opportunities


JPM US Smaller Companies


Baillie Gifford American


Baillie Gifford Global Discovery


S&W Sylvan Global Opportunities


S&W Sylvan Bromfield


Equitile Resilience


LF Purisima


Investec UK Special Situations