It seems that every fund manager has a story about Warren Buffett. Richard Penny, manager of the L&G UK Alpha fund, tells how the investment guru picked up the struggling Washington Post for $80m (£48m, €56m) after the 1975 crash, convinced that other companies would pay $400m for the newspaper at another point in the business cycle. The value of the stock went on to multiply by a factor of 10, says Mr Penny reverently.

This anecdote illustrates the “deep value” aspect of Mr Penny’s investment approach. Part of his portfolio is made up of stocks he has purchased at an extreme discount, often in emergency rights issues.