Five top fund managers name their best ever investment

In 2017, interactive investor’s sister website Money Observer’s Money Maker series has featured some of the leading names in the fund management industry.

In each piece, our interviewees explain where they are currently finding value in their respective market or asset class, and also give their take on a wide range of macroeconomic talking points. We also ask fund managers to name their best and worst ever investment.

Here we take a look back at the favourite choices made by some of the investors who have featured in the series.

Richard Buxton, manager of the Old Mutual UK Alpha fund:

“Reuters. I bought in 2000 and then sold in 2008, when the company was acquired by Thomson Corporation (TRI). I made 10 times investors’ money. I had been attracted to the stock because it was so out of favour at the time, falling behind its nearest competitor, Bloomberg. I bought thinking it was the classic case of a cyclical stock at the low point in its cycle.”

James Anderson, manager of the Scottish Mortgage investment trust (SMT):

“Amazon (AMZN), which I have owned since 2004.” More generally, when asked about why he favours tech-heavy businesses, including Alphabet (GOOGL) (Google), Facebook (FB) and Alibaba (BABA), he adds: “We believe these companies can be analysed in the classic way in order to gauge future growth rates and returns.

“We have become more and more confident that a set of companies is going to last a long time. The basic underpinnings of the technological revolution are getting stronger rather than weaker.”

Nick Train, manager of Finsbury Growth & Income Trust (FGT) and CF Lindsell Train UK Equity:

“ITV (ITV), over 20 years ago, when it had a dozen or so regional independent television companies. In the process, I learnt a valuable lesson – don’t underestimate a business that can capture people’s attention.”

Jacob de Tusch-Lec, manager of Artemis Global Income:

“Drillisch (DRI), a German mobile-network operator. I bought it some time ago and still hold it now. A quirk in German legislation has forced the larger telecoms operators to wholesale their capacity to other network providers at a low price. Drillisch has been a beneficiary of this. The company is also a very shrewd retailer, both online and offline. Sometimes it’s the boring stuff that’s exciting.”

Dale Nichols, manager of Fidelity China Special Situations:

“Outside China, the Japanese telecoms business Softbank (SFTBY). Chief executive Masayoshi Son has astonishing vision and execution. There is a huge amount of hidden value in the investments it holds. The company owns 20% in Alibaba, for example, which is not reflected in the share price.

“Within China we have held 51job.com (JOBS), which is the leader in online recruitment in China. The shift to online has happened very quickly and the company is executing on its plans effectively.”

This article was originally published in our sister magazine Money Observer. Click here to subscribe.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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