Fantasy Fund Manager is back – with 10 chances to win £15k in prizes

Fantasy Fund Manager season 3
Fantasy Fund Manager season 3

Fantasy Fund Manager is back for its fifth season – with a twist. Players now have 10 chances to win as the prize pot in our stock-picking game has swelled to £15,000.

The aim of the eight-week game is the same: to grow a virtual £100,000 portfolio as quickly as possible and rise up the leaderboard. Players who top the table will take home our cash prizes: £1,000 for the best-performing fund each week, £5,000 for the overall winner and, new for this season, £2,000 for the runner-up.

From today, players can begin experimenting with up to two portfolios before the competition kicks off two weeks later on October 25. They can pick from hundreds of Britain’s leading shares, selecting a minimum of five per fund.

Before jumping into building a portfolio, there are lessons to be gleaned from previous winners and leading contenders.

Targeting companies that are likely to be the subject of takeover approaches can be a winning strategy. Last season’s winner, hedge fund employee Jackson Read, bought the shares of aerospace firms, which surged after they were targeted by American private equity firms.

The 25-year-old from Southend-on-Sea turned £100,000 into £133,000, nearly 10 times the British stock market return, and has put his £5,000 winnings towards a house deposit.

Other top players from the previous four seasons have gone all out on hot investment themes, from gold miners to supermarkets and technology stocks. Some traded every day in a bid to outwit other players, while others adopted a rigid “buy-and-hold” approach, keeping their portfolios intact.

But simply copying the portfolios of past winners will not cut it in the new game. Markets are always changing and there will be plenty of surprises during the eight weeks of the competition.

One place to look for inspiration is in the views of professional stock analysts. TipRanks, an investment data firm, collates analysts’ ratings and targets prices on shares. It found that analysts were more bullish on shares in RHI Magnesita, which manufactures heatproof building materials, than any other stock on London’s FTSE 350 index.

On average, their target prices on the stock are 52pc higher than the shares’ current level. RHI Magnesita shares have fallen 28pc over the past six months but the company said in its latest half-year report that profits would pick up in the second half of the year.

Another stock tipped for big gains is Associated British Foods, owner of retailer Primark. Analysts are targeting a 50pc rise in its shares, according to TipRanks. Ioannis Pontikis, of investment analyst Morningstar, said Primark was the crown jewel in Associated British Foods’ portfolio, which also includes food and drink brands Twinings and Ryvita.

“Primark more than quadrupled its sales over the past decade as it grew across Europe, while diligently maintaining 10pc business profit margins. We expect the retailer to return to healthy growth rates and increase profitability as reopening resumes and more people return to the high street,” Mr Pontikis said.

The energy crisis could also be a profitable theme for players, with companies supplying gas and oil set to benefit from rising prices.

Richard Hunter, of fund shop Interactive Investor, said that Shell and BP would make good additions to a portfolio.

“Shell in particular has a large gas business, which will be making more money because of the crisis – its shares are up 15pc in the past month. With oil now trading at around $80 a barrel, this is good news for BP,” he said.

Mr Hunter added that shares in banks had the potential to do well

during the eight-week game as governments toy with the idea of raising interest rates to combat higher inflation.

“NatWest and Lloyds shares, which are the banks most exposed to the UK economy, are up 43pc and 31pc respectively this year. Financially they are both strong and will make more money if rates go up,” he said.

Players who believe Chinese shares are due a rebound, after falling heavily this year, could pick the Fidelity China Special Situations investment trust for their portfolios.

The Telegraph Fantasy Fund Manager game will run from October 25 2021 to December 18 2021. The winner will receive £5,000, the runner-up gets £2,000, and there will be weekly prizes of £1,000. Telegraph Media Group employees will not receive any prizes. For full terms and conditions, click here. To play, click here.