But, there are worse metaphors to use to describe the battle for investment funds, particularly in the UK equity space, where the competition is fierce and the landscape is home to many a fund group’s champion manager.
In that context it is understandable that Julie Dean is eager to re-join the joust, as she phrased it in the announcement of the details of her new fund – to prove her mettle once more in the heat of battle.
Dean herself is clearly excited by the prospect, telling Portfolio Adviser that, with the UK economic indicators improving, it is an incredibly exciting time to be re-entering the fray.
“The UK is the third largest market in the world, it is incredibly dynamic and thus there are always opportunities. And, if you can get the shape of your portfolio right, the sectoral skews correct, then you can do well.”
Asked if the changes to the economic landscape wrought by QE, have forced much of a change in the business cycle approach she said: “Although rates haven’t changed much, there has definitely been a business cycle, because the rates of economic growth have changed. And, as a result, the business cycle approach remains powerful because we would expect that sectoral performance to continue to change going forward.”
That said, she added: “It is always good to have some time out to sit back and reflect on where things are. I think it is important to be passionate about what you do, but dispassionate about what you own.”
The question for investors is, will the new fund, and the business cycle approach on which it is based, be a good champion to back, or will it be found out for tilting at windmills? And, it would seem, initial answers to this question, lean more to the former than the latter.
Andrew Merricks, head of investments at Skerritts, agrees that the UK equity sector is very competitive, and says although he hasn’t been a particular follower of Dean’s in the past, right now could well be a rather good time to be launching a new fund.
“The recent election result is positive for the UK, we are potentially in an upward swing now for UK business. So, the opportunity to start a fund with a blank sheet of paper and be able to allocate to only your best ideas, is definitely something to look at,” he said.
Tim Cockerill, investment director at Rowan Dartington, agrees that the ability to start with a clean sheet of paper is an attractive proposition, but is less convinced that now is the best time to be launching a fund.
“The UK market is not looking particularly cheap at the moment. Yes there are still pockets of value, but valuations have run up,” he said.
