Bestinvest says
Previously a Garmore fund, this attracted a strong following under manager Gervais Williams, but he left Gartmore in 2010 and the new team are still building up a track record at Henderson.
The fund's stock universe comprises companies with a market capitalisation below £1bn, including AiM. Stocks in the portfolio are primarily sourced by the UK Smaller Companies team, comprising the two fund managers and two investment managers. However, ideas may also be supplied other Henderson teams and from external research.
The team believes that earnings are a core driver of share prices, and that identifying companies whose earnings can exceed market expectations is the key to adding value. They undertake around 1000 company meetings each year, evaluating businesses based on their market, company franchise within that market, management and their financial position (in particular balance sheet strength). They use this information to build proprietary fundamental models for each company, looking for those where their valuation differs from that of the market.