As a boutique, we focus on UK smaller companies. Unlike a larger fund house, we are not encumbered by a need to juggle a disparate range of investment mandates, so we can ensure that our Fund gets all the attention and love it deserves.
- Boutiques focusing on smaller companies could have an advantage in that the focus of their research effort is directed towards an area that is often neglected by larger firms, increasing the potential for alpha generation. Since we are seeking a different and better result, we willingly put in the required additional effort.
- As a boutique, we can, and intend to, communicate openly with investors – as we would like a fund manager to do for us, if our positions were reversed.
- We aim to deliver consistent results. We want our portfolio to show positive returns, every day, every week, every month and every year. Sadly, that is not possible. Based on daily news flow, market prices fluctuate and so do the stock prices of the companies in our portfolio. That does not mean we hide behind the index. We are seeking long term outperformance – and we are willing to accept short term underperformance to achieve this goal. Occasionally, in a large institutional firm, such a mindset can pose a career risk that very few are prepared to accept. Often, cheery (committee) consensus is the way to survive in large companies.
We are a boutique that puts the client first. We will do what is right for the long term because we can. Our name is on the door.
We are very clear in our heads: we are running a marathon and seeking long term outperformance over the indices. There is nothing more to add.