Merian UK Alpha Fund

This was our first introduction to the strategy. Richard Buxton has a very good reputation within the industry. However, although since launch the strategy has outperformed the index marginally over short periods, the fund has basically tracked or underperformed. On the upside the fund marginally outperforms but there is no protection on the downside. The volatility is also high compared to the benchmark and investors are not being rewarded for this. The batting average is also worth looking at and this is below 50. This means the management are getting less right than wrong.

If we look further at the fund, there is value tilt and this is the part of the market that is unloved. If you consider Barclays who are reporting positive data, the market continues to value them down. To Richard this makes no sense. We had a feeling that Richard wanted to take up the rights issue with IAG, but this was overruled. He feels the level of cash burn is less than the market is anticipating. He has strong confidence in the management and feels that this will be seen by the market and will be a catalyst for change in the share price….read more

Fund Facts Morningstar

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