Hargreaves Lansdown has removed the Artemis Special Situations fund from its Wealth 150 list of favourite funds.
The fund has performed in line with the market and peers, says analyst Rob Morgan, despite its low exposure to the banking sector, the worst performing sector of the market.
Morgan says although the fund has a strong long-term performance, returns have been “hampered by weaker stock picking” by manager Derek Stuart.
He explains: “In recent months, for instance, his holding in hedge fund manager Man Group fared poorly as their assets under management have fallen.”
The analyst says the removal from the Wealth 150 is not a suggestion for investors to sell the fund if it continues to meet objectives.
Morgan says: “Derek Stuart remains a high-quality manager and we continue to believe the fund is a good choice for exposure to the UK market.
“Indeed, the current mix of assets in the fund could fare well if market sentiment improves.”
He adds: “Underlying holdings range from large, international companies such as GlaxoSmithKline and Vodafone to higher-risk, smaller, more dynamic companies such as Victrex and Domino Printing.
“Many of these businesses also have a high level of overseas earnings, so they are not heavily reliant on the domestic UK economy.”
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