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Beware of single-style funds

Fund selectors should be wary picking a manager who runs a fund with a specific style, warns Ian Heslop, head of global equities at Old Mutual Global Investors.

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“Style concentration kills long-term performance because you can’t get consistent returns if you only have one style,” says Heslop.

“Running a value or a growth fund, you will be top of the pile at certain points in the cycle, but you’ll also be bottom at a certain point. So consistency comes from diversification across style.” 

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