Trustnet Magazine Issue 11 October 2015 | Page 4

MONEY STRATEGIES BEHIND THE STYLE Phil Scott looks at what the major fund management techniques actually involve and the pros and cons of each one W ith Trustnet Magazine aimed at retail investors, we try to make our articles as easy to understand and as jargon-free as possible. However, we can occasionally fall into the trap of using an obscure phrase that is likely to leave the reader scratching their head, whether this is due to overestimating their knowledge or simply because explaining the notion in detail would take up too much space. One of the areas where it can be easy to sleepwalk into a state of waffle is in the description of fund management styles. As a result, here is an idiot’s guide to some of the most popular techniques in use. BOTTOM-UP This is a tactic used by pure stockpickers where little to no attention is paid to the wider economic landscape. The approach can unearth great opportunities missed by the wider market but it is better-suited to small c \