Skandia UK Strategic Best Ideas hits record 80% net long

Skandia’s UK Strategic Best Ideas fund has reached an all-time-high net market exposure following the removal of two mandates last month.

UK Strategic Best Ideas – which brings together the top stock tips, either long or short, from seven different fund managers – has hit 80% net long for the first time in its two-and-a-half-year existence.

SIG fund manager Ryan Hughes says the fund’s underlying managers are positioning their respective portfolios for a continued rally in UK equities.

“Market exposure within the fund hit its lowest level of 40% in March last year but has now reached just over 80% as managers find ever increasing numbers of stocks they think will benefit from the economic recovery,” he says.

The group reduced the number of managers to seven early last month, dropping mandates from Ignis Cartesian duo Andrew Kelly and David Stevenson and Cazenove’s Tim Russell.

Remaining managers in UK Strategic Best Ideas are BlackRock’s Mark Lyttleton and Richard Plackett, Cazenove’s Neil Pegrum, Artemis’ Tim Steer, Gartmore’s Ben Wallace, Polar Capital’s Philip Hardy and SVM’s Colin McLean.

Launched in September 2007, Skandia UK Strategic Best Ideas topped the IMA UK All Companies sector in 2008, falling just 11.6% against an average 32% decline during the period.

The fund struggled to keep up with the market during the strong bull run last year, an eventuality the managers fully expected.

“The fund did lag the market last year, but as we said from the launch, this is not a product that will fully match up with a sharply rising market,” Hughes adds.

“But with markets expected to be volatile this year, the fund’s strengths could once again come to the fore.

“The fund is still 7% ahead of the market from launch, which clearly shows it can deliver for investors through the cycle.”