Bestinvest says
This is a steady and consistent small company performer across all market cycles benefiting from a large and stable team under the strategic direction of Ashton Bradbury, previously manager of the small cap fund and one of the city's most respected UK equity investors. The portfolio will tend to have some overlap with its sister fund, the UK Mid Cap Select fund.
The investment philosophy is a balance of top down and bottom up inputs, the former will impact on the balance of growth versus value type companies within the portfolio according to changes in the business cycle. Top down analysis factors are economic growth, interest rate cycle, industry trends. Bottom up factors include management, business profile, and financial position. Top down strategy meetings are held monthly and chaired by Ashton Bradbury, stock selection meetings are held on a weekly basis led by Nickols. The team adopt a screening process to identify potential stock specific opportunities. The emphasis will be on companies that have the ability to grow profits faster than the market over a sustained period, a higher probability of producing an earnings surprise or the potential for a re-rating.