2018 Outlook

23 Mar 2018

The opportunity in active management for investors

2018 Outlook – The opportunity in active management for investors

In 2018 we anticipate that the alpha, generated through stock selection, will contribute more to overall returns which until the end of 2017 had been largely driven by beta (ETF Products).

Where actively managed funds will, in our opinion, differentiate themselves from passive solutions in 2018 is through diversification.  Diversified stock selectors with concentrated portfolios can potentially outperform the index if there is a large differentiation between the portfolio and the benchmark it seeks to outperform.

Fundamental research is a valuable tool in assisting skilled active managers to trim and eliminate overpriced securities from the portfolio and helping them to identify under-priced, under-valued opportunities.  

This, in theory, allows active managers to outperform the index over market cycles with significantly less volatility.

The fund managers at CRUX use a bottom-up, stock-picking approach.  Our managers seek strong performance and earnings potential which is not reflected in the current share price of individual companies.  We believe that these companies will thrive and as a result will deliver profitable returns for our investors.

Take advantage of our active management approach by investing in one of our two flagship funds; CRUX European Special Situations Fund and CRUX European Fund managed by Fund Manager Richard Pease.

Benefits of Active Management


Opportunity for outperformance

Active fund managers aim to beat the index, so they offer you the potential to make higher returns than the average ETF or tracker product

Defensive measures

Fund managers are nimble and able to react quickly to changing market conditions looking to minimise potential losses for investors by increasing and decreasing holdings in certain securities to limit the potential downside

Research

In-depth research allows managers to identify which specific companies to invest in.  It is the quality of the research which gives the managers the potential to outperform the index

CESSF active share 84.6% as at 31.01.18.

Authorised and regulated by the Financial Conduct Authority (ref:623757)

CRUX Asset Management Limited is registered in England & Wales, company number 08697189

Registered Office

5 Stratton Street,
London W1J 8LA

© 2018 CRUX Asset Management Limited. All Rights Reserved

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