Funds Centre

Investec Global Special Situations added to Wealth 150

We have recently added the Investec Global Special Situations Fund to the Wealth 150, our list of favourite funds in each sector.It is managed by Alastair Mundy, who is a fine example of what is known in the industry as a ‘contrarian’

fund manager. What this means is that he tends to avoid the most fashionable parts of the market and focuses on areas that are not receiving as much attention. Investing in unloved, but promising, sectors can be an effective strategy over the long term because the fund will be ideally placed to benefit if/when the market recognises their potential. That said it is higher risk, returns are unlikely to be linked to an index, and investors need to be patient.So where are Mr Mundy and his team at Investec finding value in markets today? Well firstly they want to buy shares in businesses that are easy to understand and where the management has a history of working through a recession. In addition they are avoiding indebted companies even if they otherwise appear strong; debt is dangerous in this type of environment.This fund hasn’t been around for very long, but Mr Mundy is an experienced investor who has been running a UK fund along similar lines for years. The Global Special Situations Fund has outperformed its peers in a falling market since launch, although remember that past performance is not a guide to future returns.It is difficult for investors to take a truly long term approach at the moment. However, this is the kind of fund that would appeal to a patient investor who doesn’t like following the herd.Stuart Goodwin, Analyst» Key Features of the Investec Global Special Situations Fund