Question
I hold the Artemis Capital ISA fund. FundExpert gives it its highest rating of 5 * while BestInvest gives it its own lowest rating of 1 * What a huge discrepancy in opinion means I don't know whether it's a Diamond or a Dog. How can such a difference of opinion exist ? Do I keep it or switch ? Please may I have your opinion.
Your website is quite a revelation ! The more I look, the more I find. It is brilliant. Thank you.Answer
Artemis Capital uses computer analysis to help pick stocks rather than the more traditional route of fund managers manually analysing and interviewing numerous companies in which they might invest. Artemis fund manager Philip Wolstencroft calls his system SmartGarp (growth at a reasonable price).
In very simple terms the SmartGarp process aims to identify companies that are growing faster than average but with a below average price. And in general it's worked well longer term. However, there have been periods of pretty major underperformance along the way.
The trouble with investment systems like SmartGarp is that they tend to get caught out when markets fundamentally shift direction - SmartGarp funds got hammered more than most during and after the 2007/08 financial crisis. It seems stock selection rather lagged major market changes, with SmartGarp funds continuing to favour stocks in some of the hardest hit sectors.
Bestinvest appears to be basing its 1 star rating based on several years of poor performance following the financial crisis. However, performance has picked up markedly for Artemis Capital recently, with the fund beating the FTSE All Share by 11% over the last year, something that is probably more reflected in FundExpert's ratings.
Which is right?
I think Bestinvest generally has a more thorough research process than FundExpert, but appears to be a year or more out of date re: Artemis Capital (the Bestinvest website still says ' as of yet the fund has not experienced a turnaround in performance'). FundExpert is obviously a fan of SmartGarp, but I would be wary of giving the fund a 5 start rating on the basis it may not cope very well if we experience major market shifts in future (as is quite likely).
On balance, I think Artemis Capital is worth holding provided you understand what you're buying and the potential risk of severe underperformance if we hit another downturn. Perhaps at present it's better suited to optimists than pessimists.
I hold the Artemis Capital ISA fund. FundExpert gives it its highest rating of 5 * while BestInvest gives it its own lowest rating of 1 * What a huge discrepancy in opinion means I don't know whether it's a Diamond or a Dog. How can such a difference of opinion exist ? Do I keep it or switch ? Please may I have your opinion.
Your website is quite a revelation ! The more I look, the more I find. It is brilliant. Thank you.Answer
Artemis Capital uses computer analysis to help pick stocks rather than the more traditional route of fund managers manually analysing and interviewing numerous companies in which they might invest. Artemis fund manager Philip Wolstencroft calls his system SmartGarp (growth at a reasonable price).
In very simple terms the SmartGarp process aims to identify companies that are growing faster than average but with a below average price. And in general it's worked well longer term. However, there have been periods of pretty major underperformance along the way.
The trouble with investment systems like SmartGarp is that they tend to get caught out when markets fundamentally shift direction - SmartGarp funds got hammered more than most during and after the 2007/08 financial crisis. It seems stock selection rather lagged major market changes, with SmartGarp funds continuing to favour stocks in some of the hardest hit sectors.
Bestinvest appears to be basing its 1 star rating based on several years of poor performance following the financial crisis. However, performance has picked up markedly for Artemis Capital recently, with the fund beating the FTSE All Share by 11% over the last year, something that is probably more reflected in FundExpert's ratings.
Which is right?
I think Bestinvest generally has a more thorough research process than FundExpert, but appears to be a year or more out of date re: Artemis Capital (the Bestinvest website still says ' as of yet the fund has not experienced a turnaround in performance'). FundExpert is obviously a fan of SmartGarp, but I would be wary of giving the fund a 5 start rating on the basis it may not cope very well if we experience major market shifts in future (as is quite likely).
On balance, I think Artemis Capital is worth holding provided you understand what you're buying and the potential risk of severe underperformance if we hit another downturn. Perhaps at present it's better suited to optimists than pessimists.
Read this Q and A at http://www.candidmoney.com/askjustin/840/is-artemis-capital-a-diamond-or-dog
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