Long-term recovery focus drives outperformance

Lowland Investment Company (LWI) invests across the UK stock market with the aim of providing attractive capital and income returns for its investors. Managed by James Henderson and Laura Foll at Janus Henderson Investors, LWI’s portfolio is diversified over more than 100 stocks, allowing the managers to back undervalued and recovery situations over the long term by starting with small positions to limit downside risk. An example of such a stock is insurance company Hiscox, bought in the aftermath of the collapse of the Lloyd’s insurance syndicates, since when its market capitalisation has increased from £40m to c £4bn. Holdings such as this have helped LWI to outperform its FTSE All-Share Index benchmark (in NAV total return terms) over one, three, five and 10 years, and since James Henderson began managing the portfolio in 1990.