A British investor withdraws after achieving a return of 10,370% in 39 years

A low profile British fund manager has announced that he will retire in September after have achieved an aggregate return on your fund of more than 10,000%in his 39-year professional career.

Is about simon knottwhich has managed the Rights & Issues investment fund since 1984. The investor obtained a return of 10,371%compared to the 610% rise achieved by the benchmark UK stock index, the FTSE All-Share, over the same period.

An investor who had invested £1,000 in 1984 and not taken it out of the fund would now have more than £4 million. Yes, gross. If he wanted to sell the fund he would have to deduct a portion of his earnings for payments to the Treasury.

Knott’s strategy has been based on investing in small British companies, with big bets on a handful of stocks, after extensive research. It is what is known in the jargon as investment in value, or by conviction.

His largest current holding, fragrance company Treatt, which accounts for 20% of his portfolio, while four others account for more than 10% each. Most fund managers don’t usually commit more than 5% of a single holding.

Peter Spiller, manager of the investment fund Capital Gearing, former investor of Rights & Issues, has explained to the delicate The Telegraph: “Over the years it has had a terrific track record, brilliantly accomplished, of selecting a few high-conviction ideas and keeping them in the pipeline over the years.”

Knott’s fund hardly publicized but attracted a loyal following among private savers, whose combined holdings made investment “platforms” like Hargreaves Lansdown among its biggest shareholders.

A British investor withdraws after achieving a return of 10,370% in 39 years

Peter Hewitt of BMO Global Asset Management explains that Knott “seemed to have a unique style: he wasn’t part of a big group, but small investors identified with him and his management style.”

Knott is also known for being an excellent chess player and having played in the English championship. The manager, who studied at the prestigious Trinity College in Cambridge, became an international grandmaster in 2001.

Rights & Issues is one of the increasingly rare “self-managed” investment funds. Most trust boards now appoint an outside fund management company to manage the portfolio. Rights & Issues has decided to adopt this model when Knott leaves office, after which he will be integrated into the Jupiter Fund Management group.

The fund, which has total assets of 189 million pounds sterling (220 million euros) and registers an 11% discount on the net asset value (NAV, in English), will make a 10% repurchase offer of shares at 96% of their NAV for investors who don’t want to follow the board of directors to Jupiter.

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