LF Gresham House UK
Micro Cap Fund
An award-winning, high-conviction, concentrated fund which aims to deliver attractive, long-term, risk-adjusted returns.
The fund has achieved consistent low correlation to its peer group through a dedicated focus on micro-cap companies and fundamentals-based stock picking.
We believe there is significant opportunity in the segment of the market below £250 million market cap, because:
- A lack of research provides opportunities for stock-pickers
- New ideas are continuously unearthed within an investment universe that is changing constantly
- It delivers long-term performance
- It offers discounted valuations due to companies being less well-known and with a perception of high risk
- A wide array of opportunities exists that other funds gloss over
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
- 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
How to invest
Prospective investors can purchase shares directly from Link Fund Solutions Limited or through a professional adviser or other intermediary. Application forms can be obtained from Link Fund Solutions.
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