Liontrust is planning to expand its UK equity offering with a UK Micro Cap fund to be run by Anthony Cross.
The new fund is expected to launch in the first quarter of next year, subject to FCA approval.
Mr Cross will co-manager the fund alongside Victoria Bates and Matt Tonge, the latter having recently moved from the Liontrust trading desk to become part of the manager’s economic advantage team.
A spokesperson from Liontrust said there are companies in the sector “which can generate growth in a low-growth environment and can adapt to rapidly changing environments, and it is possible to find profitable micro-cap companies [...] which often pay dividends.”
The fund will be managed in keeping with Mr Cross’ existing process, stipulations of which include the demand that company management must own at least 3 per cent of a stock’s equity.
Mr Cross said: “Having strengthened the Liontrust smaller companies team this year with the hire of Victoria and Matt, we see significant opportunities within the micro-cap end of the market, and are excited about the launch of our fund next year.”
The manager currently runs the Liontrust Special Situations, UK Growth and Smaller Companies funds with Julian Fosh.
In the past three years the UK Smaller Companies fund has outperformed its peer group, returning 67 per cent compared to the IA Smaller Companies sector return of 56.8 per cent, according to data from FE Analytics.
