Title: Artemis Capital Fund
1Artemis Capital Fund
Mark Tyndall
Jacob de Tusch-Lec
April 2006
2Artemis Capital Fund
- UK Equity Fund using the SmartGARP process
- One of Three Artemis SmartGARP funds
- Global, European UK
- FTSE All-Share Index Benchmark
- Benchmark aware, not benchmark-driven
- Up to 20 non-UK stocks in the portfolio
3Artemis SmartGARP Process
500 UK Stocks 500 Overseas Stocks
200 Economists
300 Fund Managers
2,000 Analysts
- Growth
- Value
- Earnings revisions
- Price Momentum
- Economic variables e.g. yield curve slopes and
GDP growth - Fund manager sentiment
75 Filters
6 Categories
Reality Check Risk Control
Decision
Capturing Common Sense in a Systematic Fashion
Source Internal.
4Artemis SmartGARP Philosophy
- BUY STOCKS
- which are growing faster than average
- which are less highly valued than average
- where earnings forecasts are going up
- AVOID
- everything else
5Hunting for Profit Clusters
- Dont pick stocks to fit a theme or top down
beliefs - Discover investment and macro themes from the
stocks highlighted by SmartGARP - Current Themes
- Large Caps looking relatively better vs. Mid Caps
- Mining and Industrials seeing significant
earnings upgrades - UK Banks European Credit Cycle in Shape
- Corporate Spending and Capex picking up
- The biggest sector overweights are in Mining,
Industrials, and Banks - The biggest sector underweights are in Food
Beverages, Health Care, and Insurance
6FTSE100 vs. FTSE250 The Gap Opening
Source JCF as at 23rd April 2006.
7Result Big Cap Exposure on the Rise
Source Internal as at 31st March 2006.
8UKs Top 25 SmartGARP Scorers
Of the 25 highest scoring UK SmartGARP stocks, 10
are Industrials and 9 are from the Basic
Resources Sector.
100 good 0 bad
Source Internal as at 21st April 2006.
9Stock Clusters Mining Stocks
Red Line 12mth forward EPS relative to FTSE
Allshare EPS Black Line price relative to FTSE
Allshare Index.Source Datastream, 21st April
2006.
10Stock Clusters Industrials Capex Story
Red Line 12mth forward EPS relative to DJ World
Index EPS Black Line price relative to DJ
World Index. Source Datastream, 21st April 2006.
11Investing in Non-UK Companies
Red Line 12mth forward EPS relative to DJ World
Index EPS Black Line price relative to DJ
World Index. Source Datastream, 21st April 2006.
12Artemis Capital Fund
- UK Equity Fund using the SmartGARP process
- One of Three Artemis SmartGARP funds
- Global, European UK
- FTSE All-Share Index Benchmark
- Benchmark aware, not benchmark-driven
- Up to 20 non-UK stocks in the portfolio
as at 21st April 2006.
13Artemis Capital Fund Performance
Source Datastream, 21st April 2006 Benchmark is
FTSE Allshare.
14Important Notice
- This document is issued by Artemis Investment
Management Limited which is authorised and
regulated by the Financial Services Authority.
This document is intended solely for
institutional investors and professional advisers
authorised under the Financial Services and
Markets Act 2000 and should not be passed, either
in whole or in part, to private investors who
would be unable to place any reliance on the
information contained herein. - Any research or analysis contained in this
document has been procured by Artemis for its own
use and may be acted on in that connection. The
contents of the document are based on sources of
information believed to be reliable however,
save to the extent required by applicable law or
regulations, no guarantee, warranty or
representation is given as to its accuracy or
completeness. The document may include
forward-looking statements which are based on
Artemiss current opinions, expectations and
projections. It is provided to you only
incidentally, and any opinions expressed are
subject to change without notice. - Artemis and the Artemis Coin are trademarks of
Artemis Investment Management Limited.
1200/04/06/KM
15Top 20 Holdings by Score
100 good 0 bad
Source Internal as at 21st April 2006.
16Our Sector Bets Today
Declining score corresponds with negative sector
spreads
Source Internal as at 21st April 2006.
17Risk Aversion
Risk Appetite Quite Strong at the Moment...
Source Datastream and Internal as at 21st April
2006.
18Risk Aversion (II)
Any increase in risk aversion would probably
favour FTSE 100
Source Datastream as at 21st of April 2006.
19Reasons to Be Cheerful ... Dividend Growth
Source Datastream as at 21st of April 2006.
20Reasons to Be Cheerful ... PE-Multiples
Source Datastream as at 21st of April 2006.
21Stellar EPS Growth... As Good as it Gets?
Source Datastream as at 21st of April 2006.