The fund will use the same unconstrained, bottom-up stock-picking selection as the £220m UK Dynamic fund, which has outperformed the FTSE All Share by 30% since launch four years ago. The fund will focus on absolute rather than relative returns, and will hold between 50 and 100 stocks.Elliot says the investment process looks for stocks trading at deep discounts to the market and which should experience catalysts that will change the market’s view of them. “We look for deep valuation and extreme growth situations,” he says. “We buy stocks that will benefit from good news, or that are delivering earnings better than expectations. Over the long run, it is yield and value that outperforms.” He says a key theme will be supply and demand imbalances in traditional heavy industries, driven by demand growth in China and Asia, and 10-15 years of structural under-investment in those industries: “It is one of the reasons the oil price is moving towards $50.” Three of the largest holdings at launch are Norwegian fertiliser producer Yara, French mining stock Eramet and Greek bank Alpha. JPMF says limited supply and rising input costs from US rivals have pushed Yara’s sales and margins higher than analyst expectations, and Eramet’s share price has gained as global demand for commodities increases. Alpha is profiting from growth in domestic lending, and also taps into EU accession countries by owning local operations. Gambhir says: “Investing in Europe is an exciting propostion because of the sheer breadth and scale of the opportunity. The range of companies in which the fund can invest includes some of the world’s most exciting investments.” The fund will be benchmarked against the FTSE World Europe ex UK index, and will have an intital charge of 5.5%.