Focus on valuation drives FGIT's performance

A focus on undervalued stocks has driven the performance of the Finsbury Growth & Income trust, acco...

A focus on undervalued stocks has driven the performance of the Finsbury Growth & Income trust, according to its manager Nick Train. The £161m trust has doubled in market capitalisation while its share price has increased by 50% over the past two years, according to Train, something he partially attributes to naïve optimism. “The past 25 years have seen the triumph of the optimist, even though some think it appears smarter to take a pessimistic outlook,” he said. Train runs a high-conviction portfolio of about 25 stocks, heavily weighted in the financial, cyclical services and consume...