Views & News

Under the Bonnet

| UK Equities
Tom Matthews
11 Mar 2020
  • The Fund’s underperformance in February was attributable to stock selection as a handful of stocks experienced markedly bearish market reactions to issues that were in most cases already known. 
  • Shares in WPP fell 16% (-30% YTD) after FY19 results showed that a tougher Q4 meant revenue growth and underlying profit were c. 0.1% and c. 2.0% below analyst expectations respectively.
  • Shares in The Restaurant Group fell to new lows as growing market fears over the effect of the coronavirus on leisure spending coincided with management choosing to suspend the dividend.

Disclaimer

Past performance is no guarantee of future performance. The value of investments and the income from them may go down as well as up and you may not get back your original investment. The information contained herein including any expression of opinion is for information purposes only and is given on the understanding that it is not a recommendation. The Fund’s investment include shares in small-cap companies and these tend to be traded less frequently and in lower volumes than larger companies making them potentially less liquid and more volatile.

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