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Gibbs has timed the market before, but will his new focus bring the same returns?
THE new Jupiter Absolute Return fund aims to make positive returns in all market conditions.
There have been plenty of similar products launched in the last couple of years, but none of them have a manager with a track record to match that of Philip Gibbs.
Over the past 12 years Gibbs has been running Jupiter Financial Opportunities, during which time it has been the best performing fund in the UK. What makes this even more remarkable is that he was able to protect his portfolio against the impact of the credit crunch.
Since March 2000 Gibbs has also been managing an offshore hedge fund which is not available to private investors. This has made an average annual return of around 17% and the new Absolute Return fund will follow a similar mandate. The key to this success has been an uncanny ability to time the market, which started when he shorted the technology bubble in 2000.
He then profited from the bull run in emerging markets and commodities, before going defensive ahead of the credit crisis.
The performance of this fund will usually look very different to the indices as it has an absolute return approach and a benchmark of 3 month Sterling LIBOR
“At present, I am more bullish on financials than most other areas of the stock market and my portfolio will reflect this,” says Gibbs. “To an extent these investments will point towards the Far East where the strong economic growth is, but we are also hoping to participate in some recovery in Western economies.”
The new fund offers a tightly-focused portfolio of his best ideas and gives him the scope to invest in shares, corporate bonds, currencies and cash. He can also sell short to profit from price falls where appropriate. This sort of remit can produce exceptional returns, but will underperform the market if the manager gets it wrong. “It is important for investors to understand that the performance of this fund will usually look very different to the indices as it has an absolute return approach and a benchmark of three month Sterling LIBOR,” explains Gibbs.
Jupiter Absolute Return has an initial charge of 5.25%, which may be discounted when buying through a stockbroker.
There is an annual charge of 1.25% and a performance fee of 15% of any excess returns over and above its benchmark.
By Nick Sudbury |
