Value stocks are passé: it’s now time to move on

The “value” play is over for many of the 5,000 Telegraph Fantasy Fund Manager players who have faced a difficult week battling it out for the £10,000 grand prize.

This week players shifted away from value stocks – businesses with depressed share prices that could bounce with an economic recovery. The likes of engine giant Rolls-Royce, oil firm BP, cruise operator Carnival and airline easyJet were among the most-sold stocks every day this week.

Value strategies abounded among the game’s leaders during the competition’s early days, with the share price of such stocks rising on the back of coronavirus vaccine news and breakthroughs in Brexit negotiations. However, subsequent lockdowns and delays in a Brexit trade agreement have sapped investor optimism.

Instead, players turned to firms reporting market- beating results. Retailer Dixons Carphone’s share price spiked 20pc in one day after its profits beat expectations.

Retailers have proven a good buy for Fantasy Fund Manager players. Last week’s winner of the £100 prize for the best returning fund owned toy maker Games Workshop and furniture shop Dunelm.

The player, who turned £95,971 into £101,787 in his Barney Rubble Fund between Dec 7 and Dec 11, relied upon an eclectic mix of companies. This included energy company Calisen, farming supplier Genus and gaming firm Gamesys. Engineering company Weir Group and steel maker Evraz also played a part with 6pc share price returns each.

He avoided AstraZeneca – the mostowned stock in the game, appearing in 1,459 players’ portfolios on Thursday – which also took a tumble. The pharmaceutical giant’s share price fell 7.5pc on Monday after it announced a £29bn takeover of American biotech firm Alexion. Investors shunned the deal due to the hefty price tag although analysts remained positive on its longterm merits.

The game is open exclusively to Telegraph subscribers, who are competing for a £10,000 top prize. Sign up with our special offer of £1 per month for three months by visiting telegraph. co.uk/fantasy-fund.