L&G's UK Alpha Trust has bounced back from a poor mid-2006 to become the best-performing fund across...
L&G's UK Alpha Trust has bounced back from a poor mid-2006 to become the best-performing fund across all sectors over the past year, according to Trustnet.
The vehicle has returned 36.4% over the past year 19 April, beating various smaller company and single country portfolios.
Manager Richard Penny said the fund's aggressive style has seen performance soar every month over the past eight apart from November. He emphasised the portfolio, holding only 25 positions, is not for the average investor and clients should understand there will be times when the strategy does not work.
He said: "In the middle of last year, we had an absence of FTSE 100 holdings, such as the mining stocks that were doing very well, and some of the companies in the portfolio halved.
"When you have a 25-stock portfolio and two of those halve in price, the fund is going to be badly hit."
The fund has held mostly small-caps and a few Aim stocks with only a handful in the FTSE 100 and mid-caps.
Penny said his investment in zero emission vehicle company Tanfield, Carter& Carter, which provides vocational training, and spread better London Capital have been the main contributors to strong performance.