Video: FTSE 100 to rise for "several more years" One half retained the Special Situations name, but focused on UK holdings and was taken over by Mr Shah, Mr Bolton's protégé. Despite a stellar first year, when he returned 21pc, Mr Shah's performance dwindled, posting negative figures for the next 24 months, then two years returning less than 5pc. Mr Shah said that he has not changed his investment approach, rather that the market has caught up to his way of thinking. "I like to invest in undervalued unloved stocks - such as UK financials," he said in this week's Your Money Their Hands video. They performed poorly in 2010 and 2011 - as did the fund. But I believe we are now entering a multi-year bull cycle for stocks. This positive rally will continue. These turnaround opportunities are a strong theme in the fund. Mr Shah currently owns a number of these stocks, at different stages of their recovery. Companies like ITV are some way through the turnaround process and have returned more than 100pc since purchase, while others have further to go in terms of recovery and share price appreciation. Mr Shah also invests in areas due to benefit from Government regulation and incentives such as fixed-line telecoms and construction companies. Regulatory headwinds are set to turn to tailwinds as governments seek to encourage investment in superfast broadband. Yet valuations are cheap and the sector continues to be unloved by the market. This creates some good bottom-up opportunities," he said. He tipped house-builder Redrow to benefit from various schemes announced in last month's Budget, including Funding for Lending.