Bestinvest says
Anthony Cross has turned this fund into one of the top performers in the UK All Companies sector since launch in 2005, and since 2008 has benefited from the input of co-manager Julian Fosh. The fund sits midway between the managers' other funds, Liontrust UK Smaller Companies and the large and mid cap focused Liontrust UK Growth, and comprises the best ideas from each. The investment style has typically given the fund a degree of resilience in falling markets.
Both managers work from home but meet regularly to discuss the fund. The portfolio is focused on companies with what they describe as “Economic Advantage” - competitive strengths that allow them to sustain a higher than average level of profitability for longer than expected. The managers believe Economic Advantage is most durable in businesses with three categories of intangible assets: (1) Intellectual property; (2) Strong distribution channels; (3) Significant recurring business.
Companies with durable Economic Advantage are also screened for the market’s appreciation of their potential earnings growth – the managers believe under-appreciated companies have the strongest potential for share price growth.