Investment fund Jupiter UK Dynamic Equity has undergone a transformation in the past 16 months. A new manager has been installed and the fund’s name has changed from Jupiter UK Special Situations.
Although it’s still early days, the changes have been for the better, as far as investors are concerned.
The performance numbers, albeit short term, are impressive with attractive returns since October 2024 – the date at which new manager Alex Savvides was installed – of 34 per cent.
A figure just behind the FTSE All-Share Index (35 per cent) but well ahead of the average for its UK all companies’ peer group (22 per cent).
The transformation is down to Savvides, who has imposed a forceful style of active investing which proved successful at investment house J O Hambro Capital Management where he ran the JOHCM UK Dynamic Fund with aplomb. He is assisted on the £1 billion fund by Stephanie Geary and Siddharth Sukumar.
Savvides is an investor who buys undervalued companies in the expectation that at some stage the market will price them correctly. Such an approach is often described as value investing, but Savvides’ method is more akin to value investing with a twist.
He often actively agitates for change to ensure that business transformation happens and that value is created for shareholders as the share price rises.
Sometimes this process happens quickly, as in the recent proposed sale of City investment grandees Schroders to US asset manager Nuveen. Savvides bought a stake in Schroders in late 2024, when the shares were trading at around £3.22. They are currently trading at £5.86 – a gain of 82 per cent.
Or it takes longer, as will be the case with builders’ merchant Travis Perkins which Savvides also started buying in late 2024 at an average price of just over £7. Only in recent months has the company’s share price begun to get back to this level.
‘The transformation of Travis is happening with a new chief executive appointed in Gavin Slark,’ says Savvides, ‘and the company is gaining market share as a result of private equity-owned rivals struggling with high levels of debt.
‘But the share price won’t fly until demand improves. That will mean more housebuilding and more Government spending on infrastructure.
‘Patience as a value investor is key, and we have it in spades. Also, we have conviction in the choice of investments we make.’
Engaging with management is vital, says Savvides. ‘As an investor, it’s imperative to adopt an ownership mentality,’ he explains. ‘We often go in, maybe when a new chairman or chief executive has been appointed, and we have our own view of what changes need to be made to the business.
‘Maybe our ideas will get pushed back a bit initially, but eventually the result will be a company with a stronger balance sheet and improved earnings.’
Current holdings include stakes in BP, Rio Tinto, and Unilever – businesses which are all undergoing transformation under new management.
The fund has 43 holdings. When Savvides jumped on board in late 2024 he kept 60 per cent of the existing portfolio, either as a result of them being companies he had held in JOHCM UK Dynamic and still liked, or which he had already considered investing in ahead of taking over the reins.
Dividends are paid semi-annually and the dividend yield is 3.4 per cent. The total annual charges are 0.76 per cent.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Freetrade
Freetrade
Investing Isa now free on basic plan
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you