LF Gresham House UK
Multi Cap Income Fund
Focusing on small and mid-cap companies and fundamentals-based stock-picking, our team aims to deliver attractive returns with a low correlation to its peer group.
Our disciplined process leverages the fundamentals-driven attributes of private equity, and our highly-resourced team has access to specialist expertise via an extensive network derived from their private-equity heritage.
We have a genuine smaller company focus and believe this sets us apart from our competitors and helps to generate low correlation. We also avoid benchmarking behaviours and cyclical risk wherever possible, adhering strictly to our investment process.
*Source: Gresham House, Trustnet. Based on peer group of 87 funds in the IA UK Equity Income sector over three years, as at 30 June 2020. Past performance is not necessarily a guide to future performance. Capital at risk.
We believe there is significant opportunity in the small and mid-cap segment of the market, because it:
- Provides income diversification
- Is under-researched, meaning an opportunity for stock-pickers
- Captures essential economic growth drivers
We focus on:
- Management – favouring high-quality, entrepreneurial teams
- Strategy – understanding how management are seeking to enhance strategic value
- Market opportunity – getting under the skin of the company’s addressable market and the dynamics likely to influence it
- Market position – assessing the company’s competitive advantages
- Financials – considering the profit and cash flow growth potential over the anticipated life of the investment, as well as quality of earnings and balance sheet strength
We interrogate potential stocks using proprietary research to evaluate the investment case and then assign a conviction score to each, based on the above fundamental components. This helps determine optimal weightings within the fund.
- Idea generation – drawing on a variety of sources, using our network of relationships
- Investment universe – we screen by size, sector, financial strength and valuation
- Target list – ideas reviewed weekly to identify management teams to meet
- Investment appraisal – we 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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