At PA Congress, Pringle talked to delegates about how his fund is as close to market neutral as it is possible to get without quite hitting a beta of zero.
He explained that the UK stock market simply provides the set of investment opportunities for the fund, as he tells Gary Corcoran here in our exclusive video.
“The way the fund is constructed and the way we run the fund it is completely uncorrelated to the UK equity market,” he says.
A lack of correlation to the FTSE is a bonus as what he is running is purely an absolute return fund and not a UK equity fund.
He and Buxton share a two-year allocation to housebuilders on the back of distressed valuations, with one now ‘twisting’ and the other ‘sticking’.
Buxton, for example, is positive about the outlook for the UK market, and has been for 18 months or so, arguing that the consumer stocks that have done well so far have done so without any help from the economy.
“If over the next two or three years we actually get some help from the economy, which we seem to be beginning to see in the UK then these companies will actually benefit and there is much more to go for in these shares,” he added.
Click here to see Gary Shepherd’s video interview with Buxton.
