JO Hambro Capital Management UK equity managers Clive Beagles (pictured) and James Lowen are reopening their JOHCM UK Equity Income fund after more than eight years of being soft-closed.
Additionally, the JOHCM UK Dynamic fund, managed by Alex Savvides, will reopen after soft closing in December 2019.
In a press release, JOHCM said the decision was a result of the high conviction its investment team had in its processes in the current market environment and its positive outlook for the asset class following a “multi-year period of redemptions in UK equities”.
The JOHCM UK Equity Income fund, which soft closed in October 2013, has total assets of £2.5bn while Savvides manages £1.5bn in the JOHCM UK Dynamic fund.
The trio of managers issued a joint statement that said they were pleased to be reopening their funds to new investors. “We believe the UK is a fundamentally cheap and ignored stock market and, within that, our naturally contrarian styles lead us to stocks that are deeply misunderstood, underappreciated and undervalued. This creates a discount on a discount which we believe offers the opportunity for generating strong and consistent returns. We look forward to engaging with any new investors over the months ahead.”
JOHCM UK Equity Income seeks stocks with a higher yield than the FTSE All Share that also have the potential for capital appreciation. The JOHCM UK Dynamic fund seeks a mixture of restructuring and recovery plays, cheap or hidden growth and other more general special situations.
In a statement, JOHCM’s head of sales and distribution for the UK, Europe and Asia Tjeerd Voskamp said: “UK equities have struggled since the Brexit vote in 2016 as allocations to the asset class fell but we feel the tide may be about to turn. With undemanding valuations, increasing M&A activity and a positive macro backdrop, our fund management teams are very positive.”
