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Artemis UK Special Situations Class I - Accumulation (GBP)

Sell:818.37p Buy:818.37p Change: 6.72p (0.83%)
Prices as at 17 September 2021
Sell:818.37p
Buy:818.37p
Change: 6.72p (0.83%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 17 September 2021
Sell:818.37p
Buy:818.37p
Change: 6.72p (0.83%)
Prices as at 17 September 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund does not feature on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. This is not a recommendation to sell; however, if you are thinking of adding to your investments, we believe the Wealth Shortlist is a good place to start. View funds on the Wealth Shortlist »

This is an unconstrained fund run by Derek Stuart, an experienced manager who looks to take advantage of turnaround situations. The fund performed well over its first four years, but performance since has been more subdued. While we rate the manager, we believe the fund's size is likely to restrict his ability to exploit opportunities in higher risk small and medium-sized companies. Consequently we believe he is unlikely to be able to deliver the previous levels of strong performance. We currently favour other funds in this sector.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

This fund's long-term track record is outstanding, with our analysis suggesting stock selection has been the primary contributor. However, the vast majority of this strong performance came in the early years of the fund's life, when it was much smaller and had greater exposure to smaller companies. Since 2004 the fund's performance has been reasonable, but not exceptional.

Investment Philosophy

The manager believes "the greatest upside is secured from the rehabilitation and re-rating of unloved stocks". Consequently, the approach is contrarian with a focus on turnaround companies, fallen angels and businesses operating in industries going through restructuring.

Process and Portfolio Construction

The manager seeks unloved, under-valued companies where there is a catalyst for change, such as a management change or restructuring. 80% of Derek Stuart's time is spent meeting with company management. He favours companies where management's interests are aligned with those of shareholders and that also benefit from a strong business model.

This is a relatively unconstrained portfolio of 50-70 holdings. There are no restrictions on sector positioning and the manager is willing to own unquoted stocks. The fund will hold a maximum 5% position in any one stock. The manager likes to take a small initial position in a company and build this up once a turnaround has clearly begun.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

17/09/16 to 17/09/17 17/09/17 to 17/09/18 17/09/18 to 17/09/19 17/09/19 to 17/09/20 17/09/20 to 17/09/21
Annual return 3.56% 4.85% -2.01% -8.33% 42.29%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Artemis was formed in 1997 and offers a range of funds invested in the UK, Europe and around the world. The Artemis philosophy is that a fund's primary aim is to beat the market and generally the fund managers are free to pursue their best ideas in order to achieve this.

Artemis is home to some of the market's leading fund managers who are required to invest their own money into their funds, and therefore success for them is success for their investors. We feel this is a great incentive for them to continue striving for good performance.

Information about the fund

Fund manager biography

manager photo
Manager Name: Derek Stuart
Manager start date: 9 March 2000
Manager located in: Edinburgh

Derek manages the Artemis UK Special Situations Fund, which he launched in March 2000, and segregated accounts alongside Andy Grey. He trained in fund management at Ivory & Sime and was promoted in 1992 to run UK equity income portfolios. Derek co-founded Artemis in 1992.

manager photo
Manager Name: Andy Gray
Manager start date: 1 January 2014
Manager located in: Edinburgh

Andy works alongside Derek Stuart managing the Artemis UK Special Situations Fund. He also manages the Artemis VCT. After graduating from Loughborough with a degree in banking and finance, Andy trained as an accountant at Deloitte & Touche. In 1998 he became an assistant fund manager at Murray Johnstone. He then spent three years at Legg Mason as a manager of UK small-cap funds, before joining SWIP as an investment director. Andy moved to Artemis in 2006.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account