Gresham House
Specialist asset management
Strategic Equity
Strategic Equity
The WS Gresham House UK Micro Cap Fund is an award-winning, high-conviction, concentrated fund which aims to deliver attractive, long-term, risk-adjusted returns for investors.
The fund has achieved consistent low correlation to its peer group through a dedicated focus on micro-cap companies and fundamentals-based stock picking.
Our private equity approach helps to build better businesses through the provision of capital, advice, good governance and targeted introductions to expertise within our network.
Key documents
Why invest?
We believe there is significant opportunity in the segment of the market below £250mn market cap
- A lack of research provides opportunities for stock-pickers
- New ideas are continuously unearthed within an investment universe that is changing constantly
- It has the potential to deliver long-term performance
- It offers discounted valuations, due to companies being less well-known and perceived as high risk
- A wide array of opportunities exist that other funds gloss over
Our approach
We interrogate stocks using proprietary research to evaluate the investment case. We assign a conviction score to each stock based on six fundamental components, which helps determine optimal weightings within the fund:
- Management – favouring entrepreneurial, high-quality teams
- Strategy – understanding how management are seeking to enhance strategic value
- Market opportunity – understanding the company’s addressable market and the dynamics likely to influence this
- Market position – assessing the company’s competitive advantage
- Financials – considering the profit and cash flow growth potential over the anticipated life of the investment and quality of earnings and balance sheet strength
- Valuation – applying appropriate metrics to a specific company and remaining disciplined on price
Our process
- Idea generation – drawing on our network of relationships and variety of sources
- Investment universe – we screen by size, sector, financial strength and valuation
- Target list – ideas reviewed weekly to identify management teams to meet
- Investment appraisal – provide insight to the appraisal process through our smaller-company focus and private-equity techniques
- Conviction score – using a quantitative output, we rate conviction and use it to determine relative weightings in the fund
Key risks
- The value of the Fund and the income from it is not guaranteed and may fall as well as rise. As your capital is at risk you may get back less than you originally invested
- Past performance is not a reliable indicator of future performance
- Funds investing in smaller companies may carry a higher degree of risk than funds investing in larger companies. The shares of smaller companies may be less liquid than securities in larger companies
How to invest
Prospective investors can purchase shares directly from Waystone Management (UK) Limited or through a professional adviser or other intermediary. Application forms can be obtained from Waystone Management (UK) Limited.
www.waystone.com
investorservices@waystone.com
0345 922 0044
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Investor relations queries
Waystone Management (UK) Limited.
investorservices@linkgroup.co.uk
0345 922 0044
Investor information
View the key investor information for this fund.
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