GLG Partners has launched a copy of a UK equity fund that has returned 92% against a benchmark of 53% by investing in undervalued assets since it was created five years ago.
GLG, part of the London-listed Man Group, launched the GLG Undervalued Assets Fund last week and has hired the fund’s original manager, Henry Dixon, to run it.
The fund aims to outperform the FTSE All Share Index through a market cycle. Between August 15, 2008, and October 31, 2013, the fund returned 92.76% against a benchmark return of 53.61%, GLG says, quoting Lipper figures.
Domiciled in the UK and seeded with £40 million (€48 million) of capital, the fund will invest predominantly in UK equities that the manager considers to be undervalued relative to their asset base and to their returns on capital. European stocks that are materially cheaper than UK peers can be bought to a maximum of 20% of the portfolio.
A fund factsheet correct at September 30, 2013, shows its largest sector was financials (24%), and Vodafone, HSBC and BP were its top three holdings.
The new fund will comprise between 40 and 60 stocks and the annual management charge is 0.75%.
Dixon will continue to manage the original fund, the FP Matterley Undervalued Assets Fund, for Matterley, a firm he founded in 2008.
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