CRUX Asset Management is launching the FP CRUX UK Special Situations fund for former Legal & General Investment Management (LGIM) fund manager Richard Penny, who joined in June.
Launching on 17 September, the fund will be a concentrated portfolio of 40 UK stocks with some exposure to other developed markets.
The fund will invest a third in large caps, a third in mid caps and a third in small caps however, the fund will only invest 1-1.5% in an individual small-cap stock, compared to 4-5% for large and mid caps.
It will have a bias towards value and cyclical stocks while avoiding expensive growth stocks.
The firm said the fund has a capacity of between £1.5bn and £2bn with Penny investing in the mandate himself.
Penny spent 15 years at LGIM, where he managed the L&G UK Alpha Trust and the L&G UK Special Situations Trust.
He has also held roles at M&G Investments and Scottish Amicable Investment Management.
Penny commented: "This is a simple proposition. I have invested in UK stocks for many years and have always believed that good businesses only make the right investments when they are bought at the right price.
"Now is the ideal time to be bringing this new offering to investors as the UK remains out of favour and the uncertain environment creates numerous attractive opportunities for experienced stock-pickers."
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