The fund has returned nearly 60 per cent to investors over the past three years, compared with a 10 per cent return from the IMA Europe ex UK sector.
Performance of fund vs sector over 3-yrs
Source: Financial Express Analytics
Hibbert avoids oil majors, saying they do not give investors exposure to an increasing oil price.
"Clauses in most oil companies’ contracts mean the extra income which could come from a higher oil price actually goes to the host government, rather than the companies drilling there."
"There’s very little growth among the companies," he said.
"We’re overweight industrials, and have been for a long time. It’s a heterogeneous sector, with different features, high barriers to entry, and high-quality businesses."
"It’s one of the most emerging markets-exposed sectors in Europe, too."
The manager also favours consumer goods, particularly luxury goods; Financial Express data shows the fund holds Swatch in its top-10 holdings.
Hibbert avoids defensive companies in his fund, particularly healthcare and pharmaceuticals. In spite of this view, his fund has a relatively low risk score, Financial Express data shows.
It took on 27 per cent of volatility over three years, while the sector average took on 25 per cent. Data from Fundswire shows the vehicle has had a high turnover in its top-10 holdings of late.
Hibbert explained that that is due to a strategy of oscillating holding-sizes depending on the value they will bring to the fund.
"We own our holdings for 9 to 12 months or longer, but we’re very active in changing the weightings of the assets."
"We invest on a fundamental basis, and then change the size of the investment on the back of our perception of whether or not it is in line with our current thinking," he said.
Commenting on the impact of the sovereign debt crises that hit Europe last year, Hibbert says Scandinavia and Northern Europe offered ample opportunities to avoid taking a hit.
"Germany’s unemployment is at a 19-year low, and Northern Europe is the best-performing part of the developed world," he said.
Hibbert is a recent addition to Trustnet’s Alpha Managers list, a rating that rewards the top 10 per cent of UT and OEIC managers for long-term performance.
For a full list of 2011’s Alpha Managers, click here.