Henderson UK Alpha duo reap rewards from mid-cap bias

Restructure by new managers

James Ross, who co-manages the £396m Henderson UK Alpha fund alongside Neil Hermon, said he has been rewarded by opportunities in the mid-cap sector since taking over the fund in 2013.

The vehicle is a combination of funds with poor track records merged following the group's acquisitions of New Star and Gartmore. After Hermon and Ross (pictured) took over, they restructured the portfolio by significantly reducing its exposure to oil and mining companies and increasing mid-cap exposure as that is where they feel "growth is most attractive at the moment". Ross said the appeal of mid-cap stocks is they are currently not too expensive and have a higher chance of being bought by a larger company and seeing growth as a result. He said: "We retain a heavy preference for...