Zak Mir charts the fund managers: Mark Slater – Avation, Redcentric, Regus and First Derivatives

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This is the third of my series “Charting The Fund Managers,” with Mark Slater – son of investment legend Jim “Zulu Principle” Slater. To my mind Mark is already in the legend category, something which is apparent to anyone who has studied his career and approach.

The fund which I am focusing on here is MFM Slater Growth, some of whose components rather interestingly coincide with those of the Malborough Special Situations in the form of Amerisur (AMER), Restore (RST) and James Fisher (FSJ). If nothing else, this is the kind of coincidence which underlines one’s faith in the merits of these stocks, and the idea of having them in your portfolio.

MFM Slater Growth top 10 holdings

But as far as the charting position of some of Slater’s stocks I am focusing on two pairs with similar configurations. The first two stocks are bullish, and it has to be said, typical of the kind of trending situations you would expect to see in any fund worth its salt.

Aviation (AVAP)

For instance, we have seen Aviation more than double since the August 2013 floor. The position now is that we have progression within a rising trend channel from November last year, with the floor of the channel currently level with the 50 day moving average at 147p.

However, the main point of interest is the way that an unfilled gap to the upside in June at 126.5p remains unfilled even after the attempt in August to fill it. The implication of this and the latest September gap based at 1.5175p is that at least while there is no end of day close back below the 50 day moving average at 147p is while the 50 day line is held we should expect that the top of last year’s price channel at 200p could be the target here by the end of next month.

Redcentric (RCN)

Ignoring any fundamental aspects regarding Redcentric, it can be seen from the daily chart how the progression here has been one of new support coming in at and above previous resistance, all within a rising trend channel from May last year. The highlight over the near term is the way that August delivered an unfilled gap to the upside through the 50 day moving average now at 118p.

The assumption to be made now however, is that while the floor of a rising trend channel which can be drawn on the daily channel from May last year at 114p – level with the 200 day moving average, the target here over the next 1-2 months is as high as the 2013 resistance line projection at 142p on a 4-6 week timeframe.

Regus (RGU)

There was a massive rally for serviced offices specialist Regus from the summer of 2012 to the beginning of 2014. The time since then has been dominated by the winding down of the bull run, with the expectation now being that in the wake of the September bear trap from below the post August 168p support zone, we are due at least an intermediate rebound. This has been accompanied by bullish divergence in the RSI window, something which gives us added confidence in terms of the possibility of recovery.

The suggestion currently is that at least while there is no end of day close back below the initial intraday support of October at 166p the upside here is seen as being as high as the area of the 200 day moving average at 198p over the next 6-8 weeks.

First Derivatives (FDP)

First Derivatives can be described as the “twin town” of Regus shares in the sense that we also have an extended wind down from a pre-2014 rally, as well as a wedge formation in place since the beginning of the year. However, there is a slight difference in the sense that there would already appear to have been a break to the upside through the top of the wedge / 50 day moving average at 929p. This provides us with a setup in which we would expect that while there is no end of day close back below the 2014 resistance line at 929p the upside here is seen as being as high as the 200 day moving average at 1,084p as soon as the end of next month.


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