Best In Class  

Best in class: Unicorn UK Smaller Companies

The portfolio also has a low turnover.

The concentrated nature of the fund does open it up to some stock specific risk.

However, this is mitigated by the team’s conservative and disciplined investment approach, which avoids loss-making and heavily-indebted companies.

The fund has returned 63.9 per cent over the past five years.

The top three holdings currently include foreign exchange specialist Alpha FX (5.6 per cent), as well as Goodwin (5.2 per cent) and 4imprint Group (4.7 per cent).

The fund has an ongoing charges figure of 0.86 per cent ^.

This is a true small-cap fund in every sense of the word - investing in genuinely smaller companies rather than mid-cap stocks.

Another positive is that the fund avoids low quality, cash-burning businesses.

It is backed by a solid investment process and a highly competent team.

We like the focus on company fundamentals, as well as the need to understand businesses in detail.

It is a strong contender in a very competitive sector.

Darius McDermott is managing director of FundCalibre