Q: What has been happening on the world equity markets this year?

A: There has been plenty of merger and acquisition activity, largely driven by private equity firms. Corporate earnings, which have been strong, are now showing signs of slowing and things are starting to look a little stretched.

Q: Looking at the world stockmarkets over the next 12 months, what do you think the key influences will be?

A: The amount of money that private equity firms can borrow. If interest rates rise it will be more difficult for privte equity firms to borrow money to finance deals.

The other key influence is the US economy. If it manages a gradual slowdown and the effects of the house price falls are contained it will be good news for the world economy. If the US consumer suffers heavily it will be very bad news.

Q: Do these conditions point you towards certain sectors which you think are more interesting than others?

A: We are moving more money into defensive sectors such as telecoms and power generation, buying shares such as Vodafone and International Power.

Q: How do you decide which funds to buy for your portfolio?

A: We are looking for companies that can grow their dividends year after year, in other words, long-term earnings growth. For that reason we like a company such as Tesco, which has already proved itself capable of growing earnings in the UK and is now poised for further exciting growth in the US.

Q: What funds have you bought recently?

A: Mapeley, a property company. It invests in buildings where the Government is the tenant and focuses on the provinces rather than London. This means the company has a secure income stream and by looking outside London it has been able to identify properties with yields of as much as 7 per cent – much more than is available in London.

Q: How do you decide when to sell a fund?

A: We sell when we think there is some fundamental change likely to happen to a company. We try to spot something happening six to nine months ahead because with the size of our holdings we cannot easily sell overnight when a piece of bad news sends everyone rushing for the door. Selling is a much underrated discipline but is actually more important than buying.

Q: What would you regard as your best fund purchase?

A: Pendragon, the car retailer. We started looking at the sector in 1999 when it was largely neglected and on low valuations and high yields. We bought a number of companies including Pendragon, which was the most aggressive operator. Its share price has risen about fivefold since.

Q: What was your most disappointing fund purchase?

A: Iceland, the frozen food retailer, and Kensington, the sub-prime mortgage lender. In both cases we made the mistake of buying on a recommendation without doing our normal thorough research. Both companies announced bad news shortly after we bought them. It is not a mistake we intend to make again.

Q: What made you become a fund manager?

A: After ending my career as a chef I knew that I wanted to do something in the finance world but with my background it was hard to persuade people I was serious. I was fortunate to be taken on by Rathbone in their private client department and eventually secured a place on the fund management side.

Q: What was the most valuable piece of advice you were given when you first started in fund management?

A: My first boss in fund management said: "follow your nose" and "have fun". What he meant was you have to trust your instincts and to enjoy what you do.

Q: What do you do to relax when you are not managing money?

A: I enjoy spending time with my wife and two children. I also enjoy various sports, though I don’t pretend to be any good. I enjoy tennis and golf and do a lot of running – I have completed the last four London Marathons.

Q: Do you think that having had a completely different career (as an international chef) before joining Rathbone gives you a greater perspective as a fund manager?

A: Definitely. People who go straight into the City after school or university have known nothing else. I have seen the world from a completely different viewpoint before moving to the Square Mile.

Q: Do you think that great fund managers are born or made?

A: I would say it’s a bit of both but you have to have a certain spark and have an innate curiosity about what makes companies tick.

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