Tim Steer started his professional life as a sound mixer, but since joining fund management group New Star in 2001, he has “dramatically widened his skill set”, as Citywire puts it, and “emerged as one of their most prolific managers”. His New Star Alpha Fund has returned 150% over the past five years, earning the former chartered accountant a Citywire AA rating.
Steer has also landed the unofficial title of the “Brian Clough” of investment management, writes Mark Atherton in The Times. Just as the former Nottingham Forest manager “felt it was as important not to concede goals as to score them, so Mr Steer considers that it is just as important to keep clear of potentially poor-performing stocks as it is to identify good ones”.
That’s why Steer bailed out of the banking sector and consumer stocks a long time ago, selling Northern Rock well before it hit the headlines for all the wrong reasons. “Banks and consumers go hand-in-hand,” he tells the Financial Times. This cautious approach has meant he’s so far avoided the worst effects of the credit crisis; the fund is up 2.26% this year against a loss of 0.33% for the benchmark UK All Companies index, according to Morningstar.com.
Despite Steer’s vigilant approach, he remains bullish about the mining sector’s fortunes; stocks he likes include BHP Billiton, First Quantum Minerals and Xstrata, he tells the FT. And because Steer believes there’s value to be had in the sector, he’s also holding onto defence stocks, such as BAE and Meggitt.
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New Star Alpha Fund top ten holdings
Name of holding, % of assets
Sig, 3.95
Charter, 3.89
BAE Systems, 3.82
Meggitt, 3.60
Babcock International Group, 3.34
Rolls Royce Group, 3.17
Rotork, 3.16
VT Group, 3.13
First Quantum Minerals, 2.82
Expro International Group, 2.74