US equity manager joins Alliance Trust stock-picker line-up

Alliance Trust has announced that Willis Towers Watson, its appointed investment manager, has added a US boutique firm to its stock-picker line-up.

Lord Smith of Kelvin has chaired Alliance Trust since 2016. Picture: Lisa Ferguson

The Dundee-based fund has expanded its list of underlying investment managers with Vulcan Value Partners (VVP), an equity manager based in Birmingham, Alabama, with more than $12 billion (£9.9bn) of assets under management.

The appointment boosts the number of stock-pickers selected for the trust, which is chaired by Lord Smith of Kelvin, from eight to nine.

VVP chief investment officer CT Fitzpatrick, who established the investment firm in 2007 and has more than 30 years’ experience, will be the lead portfolio manager for the Alliance Trust account.

VVP recently reopened capacity for new investors, having been closed since 2015. It is expected to add a differentiated source of active return, complementing existing stock-pickers in the portfolio.

Craig Baker, chairman of the Alliance Trust investment committee and global chief investment officer of Willis Towers Watson, said: “Vulcan’s appointment will provide the trust with access to another highly skilled active manager and will enhance further the portfolio’s diversity and risk control.

“What differentiates Vulcan from other ‘value’ managers is the team’s focus on capital preservation and long-term compounding opportunities.”