Funds to Watch: Threadneedle UK Select

Zero-tolerance approach to ailing companies

Mark Westwood, manager of the £217m Threadneedle UK Select fund, believes his zero-tolerance approach to ailing companies has led his fund to minimise losses, as the wider IA UK All Companies sector struggles.

Profit warnings for UK companies have recently hit a four-year high, with names including Rolls-Royce, Meggitt and Pearson disappointing shareholders. However, after ten years as manager, Westwood (pictured) said his belief that management and analysts are "always in denial" about the financial state of their companies has allowed him to avoid the worst of these blows to portfolios, with his fund down 1.5% over the year to 17 June, compared to a fall of 6.5% for the sector. "After 20 years I have learnt that profit warnings are like London buses, they come along in threes," said Westw...