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By Alexander T Davies, Hargreaves Lansdown

During his 25 years in the industry Stephen Whittaker has built up a reputation as one of the city's most talented managers.

This status was firmly enforced when he took up the management of the New Star UK Growth Fund in July 2002. At the time share prices had been falling for two years, others were wary and it was easy to get swept along with the doom and gloom. However, Stephen Whittaker saw things differently. He employed all the skills he had acquired in an impeccable career and positioned his fund for growth.

He is no less positive today. Many companies are meeting or exceeding profit expectations, interest rates are low and residential property prices remain stable. A combination of takeovers, companies buying back their own shares and others being taken private is reducing the supply of shares. At the same time investors are returning to the market so more money is chasing fewer shares - a trend that should push prices higher.

Good stock pickers need freedom to invest wherever they see the best opportunities and Stephen Whittaker is allowed to invest in any sector or company size. The fund is currently well diversified across about 80 stocks with approximately 40% of the portfolio invested in larger companies, 40% in medium and 20% of the portfolio is in smaller companies.

In particular he likes companies which are unloved by other investors. His years of experience and natural talent give him the ability to recognise those that could be on the verge of a recovery and his track record speaks for itself. Since he took over this fund it has been one of the best performing in the UK, although please remember past performance is not a guide to the future and the value of funds can fall as well as rise.

This is New Star's flagship UK fund and they are committed to providing Stephen Whittaker with all the resources he needs. We believe investors looking for a core long term UK holding should be well rewarded by the New Star UK Growth Fund.

The Fund of the Month is written by Hargreaves Lansdown. An independent broker offering unit trust, stockbroking, pension and investment services.

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