2 high-growth funds thrashing the market right now

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Most Foolish investors build their portfolios around individual stocks and shares, but there is nothing wrong with adding a few high performing funds to the mix. Here's a couple reporting today that may have slipped your attention, but merit a closer look.

SEE ALSO: Is this Neil Woodford stock on the cusp of a stunning turnaround?

See also: Should you forget the stock market and focus on crowdfunding?

APAX predator

Closed-ended investment trust APAX Global Alpha(LSE: APAX) invests 59% of its money in global private equity funds run by Apax Partners, which manages more than EUR40bn in total across its operations, and the remaining 41% in a tailored mix of derived investments. Roughly two-thirds of the fund is invested in the tech & telco and services sectors, with the remainder in healthcare and consumer. This £729m trust is 48% invested in the UK, 31% in Europe, 10% in India, 4% in the UK and 2% in China.

Recent performance has been strong, with the fund up 17% in the past 12 months, on top of a yield of 5.44%. However, today's unaudited interim results for the half year ended 30 June disappoint as currency headwinds halted recent strong growth.

Naff NAV

APAX Global Alpha posted a negative total net asset value (NAV) return of 0.7%, as the euro strengthened 8% against the US dollar. On a constant currency basis, NAV growth was positive at 4.2%. Adjusted NAV fell by EUR30.6m to EUR908.1m, due to adverse FX movements and the 2016 dividend payment of EUR23.8m.

Apax Global Alpha chairman Tim Breedon said the portfolio continues to demonstrate strong fundamentals despite the setback. "Due to FX headwinds, the headline performance was weak however the outlook is positive as AGA's Investment Adviser continues to realise value in a relatively young portfolio and is finding investment opportunities against a challenging market back drop." That may be true but performance looks even more underwhelming when I compare it to one of my favourite global investment companies, Scottish Mortgage Trust, which recently delivered a 38.1% rise in NAV.

India calling

I have done well from my stake in Jupiter India, which is up 20% over the past 12 months, and 158% over five years, according to Trustnet. However, I would have done even better with India Capital Growth Fund(LSE: IGC) which is up 29% over the past year, and 160% over five. The investment trust has just published its interim results for the six months to 30 June with the highlight a 23.8% leap in NAV to £124m, giving net gains of £24m. Now that's how to do it, APAX.

The share price increased by 27.7% to 93.25p over the year, while its two largest holdings, Dewan Housing and Federal Bank, soared 79.4% and 68.8% respectively. The AIM-quoted company is now seeking a listing on the main London market.

Discount delight

A rising tide is lifting all funds and India has been boosted by Prime Minister Modi's reform agenda, which continues to attract investors, including strong overseas inflows of $8.5bn and another $3.3bn from domestic mutual funds. Still, you have to catch that tide, and India Capital Growth's certainly did that.

Interestingly, it still trades at a whopping discount to NAV of -19.75%. If that hasn't narrowed after recent successes it may never do so, but it does offer protection against further widening. If you believe the India tide can rise even higher, this fund could be a good way to ride it.

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Harvey Jones holds units in Jupiter India but has no other position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

The world's most successful investors
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The world's most successful investors

Soros is one of the world’s most famous speculators - who sees the market as something to place highly leveraged bets on rather than invest in.

He cemented his reputation by shorting the pound on Black Wednesday in 1992, and making $1 billion from the collapse of the British currency and the near-collapse of the Bank of England.

He is another noted philanthropist, giving primarily to human rights, public health and education charities.

Slater was another highly controversial investor, known for corporate raids on public companies, and subsequent asset stripping to realise quick value for shareholders.

He also invented the phrase ‘The Zulu Principle’ to describe the importance of being a specialist when you are investing, so you can concentrate your research efforts and know more than the rest of the market about something specific.

Woodford (CBE) gained his reputation at the helm of the Invesco Perpetual Income and High Income funds, by offering relative stability and reliability in even the toughest markets.

His trademark was to make bold decisions about the companies he wanted to be invested in, and then stick with them - no matter how unfashionable his decisions were.

It led him to buy tobacco stocks in the 1990s (because he felt that concerns about the legal threats to the firms were overplayed) and avoid technology in the dotcom bubble.

Woodford currently runs Woodford Investment Management.


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