Gervais Williams has raised £50m for his UK MicroCap investment trust which he said would target stocks which are “overlooked” by the bulk of fund managers.
Mr Williams, who used to head Gartmore’s UK small cap team, raised the money through a first placing of shares, whereby trust’s seek to raise assets before then investing the proceeds.
The manager said many micro cap companies were able to “sustain growth in their turnover and cash generation even when world growth is subdued”.
“Therefore, now is a great time to set up a microcap fund that can take advantage of this environment where many AIM stocks are delivering strong earnings growth,” he said.
“There is an unusually large opportunity set of sub-£150m stocks, which in the main are overlooked by professional fund managers.”
Peel Hunt is acting as sole sponsor, broker, placing agent and intermediaries offer adviser to the company.