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Hi Friends,
Fund manager warning over UK stocks
One of the UK's most respected fund managers has warned that UK stocks are providing increasingly fewer good investment opportunities.
Anthony Bolton, known as the 'quiet assassin' due to his influence within the hedge fund industry, is the manager of the £6 billion Fidelity Special Situations unit trust as well as the Fidelity Special Values investment trust, worth £408 million.
Announcing the financial results of the Fidelity Special Values investment trust, Mr Bolton said that he believed "the bull market in the UK has now entered its final stage", and added that the number of companies that would meet his strict criteria for investment had fallen significantly in the UK.
Mr Bolton's sceptical outlook was underlined by his decision to buy a put option for the Special Values trust, which allows him to sell £91 million worth of FTSE 100 stock at a pre-agreed price within three months – a move that should offer some protection from stock market falls.
Mr Bolton is widely regarded as one of the most successful fund managers of recent years, and his Special Values net asset values has risen over 100 per cent in the last five years, compared to an average of just 23 per cent for UK-based investment trusts.
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