A fully unconstrained, highly focused UK equity strategy, integrating ESG and climate change risks and leveraging the existing market opportunity.
We follow a high conviction, unconstrained approach to build a distinctive and focused portfolio of between 25-35 UK companies.
The strategy’s mid-cap bias is the result of an unconstrained bottom-up approach.
Flexibility to invest across the market-cap spectrum. We don’t distinguish between traditional value and growth definitions - we consider any quality company that has growth potential.
Enjoys one of the highest Morningstar Sustainability ratings in its sector. We combine hard exclusions with bottom up ESG integration into the investment process. We want to ensure the companies we own for the long term are fair to all stakeholders. This is augmented with proprietary tools to highlight climate change risk in portfolios, and active ownership.
We don’t distinguish between traditional ‘value’ and ‘growth’ definitions - we consider any quality company that has growth potential
Where there is a disconnect between the quality of an asset and its price – our definition of a ‘value’. We are seeking quality franchises where the current price understates its quality.
At least 50% of the portfolio is concentrated into the 10 highest conviction positions with the least downside risk. The balance consists of smaller position sizes to provide sufficient scope for diversification.
We invest in companies that we can understand and value. In certain companies, such as in sectors like banks or biotech, we take a cautious approach in how we value them.
Scale: we focus on companies that have the ability to scale. They share important key attributes: asset light, large addressable markets, digitally enabled and they enjoy recurring revenues.
Optionality: we look for companies where intrinsic value is not recognised by the market through characteristics such as unidentified revenue opportunities, cross-sell potential and assets or cash on the balance sheet.
Low risk: the price we pay is our key measure of risk. We are focused on owning cash generative companies with strong balance sheets, solid management and esg integrity, where price has not been fully recognised by the market.
Head of UK Wholesale