UK equity market performance has attracted plenty of criticism in recent years, but as ever it depends where you look. Large caps and some unloved sectors – especially energy – have seen a resurgence at points, while small caps and quality growth shares have had a more difficult time in the face of rising rates.
This general trend can also be observed in the funds space. We recently noted that many UK funds with a value investing remit had shot the lights out in 2023, from Ninety One UK Special Situations (GB0033063636) to Artemis UK Select (GB00B2PLJG05) and the likes of Aurora (ARR) among investment trusts. By contrast, some of the funds known for backing companies with good structural growth stories have fallen out of bed.
One such struggler is the CFP SDL UK Buffettology Fund (GB00BF0LDZ31), which targets growth plays across the market cap spectrum. It once led many of its peers in performance terms, but has since run into tougher times. Having benefited from the fierce rally that marked the final quarter of last year, the fund made a modest 1.1 per cent total return in 2023, compared with a 7.4 per cent gain for the average fund in the Investment Association's UK All Companies sector and a 7.9 per cent return from the FTSE All-Share. The bear market (and growth sell-off) of 2022 had already seen the fund lose 23.4 per cent the previous year.