The portfolio is well diversified with around 65 to 70 stocks. Liquidity risk is taken very seriously, and the portfolio will always invest in some companies in the £500m to £2bn market cap space to ensure the fund remains agile.
Largest holdings at present include specialist mortgage lender OSB Group (3.3 per cent), Accesso Technology (2.8 per cent) and Atalaya Mining (2.7 per cent). Over the past five years the fund has returned 103 per cent to investors compared to 82.4 per cent for the sector average. It has an ongoing charge of 0.89 per cent.
We like funds that have a solid framework and the consistency in performance to match. This vehicle has both in spades, with few peers able to match the expertise of this UK small and mid-cap boutique. It is undoubtedly a standout player in an extremely competitive market.
Darius McDermott is managing director of FundCalibre