Although contrarian thinking is usually the preserve of value managers, we believe it is useful for managers of all investment styles. Our approach is based on the belief that investors’ behavioural biases drive the prices of stocks away from their intrinsic value. So consensus information in itself has little value.

We look to exploit the difference between the consensus view and reality. It sounds simple but the fact remains that most investors follow the herd rather than a contrarian approach.

Consequently all our research is undertaken with the sole aim of identifying contrarian opportunities and every investment idea is based on deviation from consensus. Our proprietary Investment Lifecycle methodology is a tool to benchmark a company’s intrinsic value against consensus expectations. When these differ greatly, it’s a high-conviction idea. We insist our fund managers run high-conviction portfolios that maximise their potential to outperform. We are well aware of benchmarks, but not restricted by them. 

We are also one of the UK’s largest managers of global equities and our full equities capability includes Asia, emerging markets, Europe and a specialist Pan- European Value discipline.

Added to this our Enhanced Quant process is designed for outperformance from low-risk portfolios. The discipline and consistency of quantitative models are used to spot misvalued securities which are assessed by an experienced fund manager.

Our reputation for strength and flair attracts some of the best talent in the industry. Our belief that talent should drive process rather than process driving talent, makes them stay. Leading portfolio managers work alongside dedicated research analysts with powerful quantitative tools. Our credentials give them high-level access to senior company executives. This, and our rigorous approach to fundamental analysis, gives us an edge in identifying the contrarian opportunities.

Our investment process is underpinned by a risk team that uses advanced modelling techniques to review each fund. Regular analysis ensures that managers stay true to their style and that the risk in portfolios is intentional.

That disciplined process has led to excellent results for our clients and to a string of industry accreditations and awards, including Investment Week 2007,  in which one of our fund managers was named best performing UK equity income manager over the past five years.

All figures as at end June 2008, unless otherwise stated.