Bestinvest says
The manager has generated substantial outperformance over his tenure, but returns have been volatile and the typically high weighting to smaller companies means results may be curtailed once the fund's assets have grown. Investors should also be aware that the fund typically has a wide bid offer spread.
The investment objective is to secure capital growth by investing in a concentrated portfolio of UK equities. The fund invests in stocks from the FTSE All Share, Fledgeling and AiM indices, but will typically have a large part of the portfolio invested in small cap stocks. Ideas are sourced from the rest of Legal & General's UK equity team and from the manager's broker contacts. He favours two types of stocks:
Deep Value: usually defined by traditional low valuation metrics, often with a catalyst for revaluation such as a change of management, refinancing or restructuring.
Strong Growth: companies that are growing sales and profit by >15%, with the potential to become significantly larger businesses over 3 to 5 years.
The manager takes a barbell approach, varying the weightings to growth and value depending on market conditions.