Wealth managers reveal five hidden gems for 2013

Wealth managers have revealed five lesser-known funds they are backing to outperform peers this year, in an environment where some major equity and bond markets looked stretched.

Tim Cockerill, head of collectives research at Rowan Dartington Henderson Opportunities Investment Trust This is a fund which has a lot of potential but it is not one for cautious investors. It is managed by James Henderson who has considerable experience in the area where this fund invests - predominantly mid-cap and small-cap stocks. Its universe is higher risk but it is also a small fund, around £50m, and can become illiquid at times of stress. It is also geared (12%) another factor adding to its risk. However, it is trading on a 17% discount, which is attractive, although...