How one UK equity manager is avoiding 'permanent' losses in his fund in today's challenging market

Hardeep  Tawakley
clock • 2 min read

Matthew Tillett, manager of the Allianz UK Opportunity fund, portfolio intentionally does not conform to the norm. In a bid to provide a balanced portfolio and avoid losses, the portfolio has the highest allocations to those stocks where he sees the lowest downside risk.

Partner insight "Every stock in the portfolio has a compelling upside case, but those where we truly see very limited downside risk are really special and therefore we want to back them with a lot of capital." This strategy has helped him achieve a volatility ratio of just 9.7% over five years, significantly lower than both the IA UK All Companies peer group average and the FTSE All Share. Tillett explains. "We always maintain a margin of safety against downside risk. Permanent losses are what really do the damage to long-term portfolio returns so we try really hard to avoid them. ...

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