The fund is typically quite diluted, holding around 150-200 stocks. This is to spread the exposure across different recovery sectors and their respective cycles, and also to reduce stock-specific risk. Seargent will typically avoid the consensus stocks, such as the so-called 'bond proxies', and instead target the sectors out of favour by the market due to cyclical or style reasons.
If the value run is here to stay, then Seargeant is the ideal person for the job, having demonstrated an exceptional track record. We also like that he looks to add to his holdings at almost fire-sale prices in volatile times, giving further scope for long-term capital growth.
It is an essential consideration for anyone looking for a UK value play.
Darius McDermott is managing director of FundCalibre