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UK equity funds delivered average returns of 3.2% in the first half, with M&G Group's Recovery Fund leading the way among the biggest players after it bet on Tullow Oil and Invensys.
The £3.2 billion M&G Fund, managed by Tom Dobell in London, rose 9.1% in the first six months of the year following a 28% fall in 2008. The recovery came despite a 4.2% first-half fall in the FTSE 100.
"Dobell's brilliance is his ability to select companies that have been bombed out for reasons not beyond repair," said Darius McDermott, managing director of Chelsea Financial Services. "Clearly, in the last 12 months there have been many companies that have fallen into that category."
Dobell's largest holdings were in oil and gas companies, which accounted for about 23% of the fund's assets. Tullow Oil, which climbed 42% in the first half, was the biggest holding at 7.8%.
First State Investment's £2.5 billion Asia Pacific Leaders Fund, managed by Angus Tulloch, was the second best performer, returning 9%, while M&G's £2.8 billion Global Basics Fund was third with 2.3%.
