UK equity fund that invests in the small and mid-cap end of the market and aims to produce attractive capital returns. The focus is on buying growing companies, at sensible valuations, which are highly cash generative and can finance their own growth. This should enable the fund to outpace larger capitalisation companies in the long-term.
"By focusing the portfolio on highly cash generative small and mid-cap companies that can fund their own growth I believe we can generate strong long-term performance without taking on excessive risks."
James BakerPortfolio Manager
Seeks to capture the long-term outperformance of smaller UK listed companies
Diversified portfolio of cash generative companies that can fund their own growth, combined with an active approach to portfolio positioning
Team of three fund managers, led by James Baker who has been working with UK small and mid-cap companies for over 40 years
James Baker joined Chelverton in 2014. He has over 30 years of equity market experience on both buy and sell sides, specialising for all of his career in UK Small and Mid caps stock selection.
He has worked for several organisations over the years, but most notably spent 11 years from 1999 to 2011 as part of the ABN Amro, Small Mid cap sales team, which was consistently top ranked by Extel. Prior to joining Chelverton he worked as the Assistant fund manager on the Rathbone UK Recovery Fund.
10 years
42 years
Ed Booth graduated from the London School of Economics with a degree in Economics with Economic History, and qualified as a Chartered Accountant at Deloitte, where he focused on the Insurance sector. Prior to joining Chelverton, he worked as a Business Analyst for Barclays, focusing on a number of areas including Investment Bank Revenue and Group Capital performance.
7 years
7 years
Henry joined Chelverton Asset Management in 2021 and was appointed co-manager in August 2022. Prior to joining, Henry worked on the Equity Sales team at finnCap, where he specialised in UK small and micro-cap companies. He has a degree in Economic and Social History from the University of Edinburgh and prior investment management experience at Rathbones and OLIM. Henry is a CFA Charterholder.
CFA
1 years
The UK market outperformed its international peers in March, although performance was skewed towards large and mid-cap equities. Whilst the MPC voted to keep rates unchanged in March, the tone of the minutes suggested policymakers were comfortable with the rapidly falling path of inflation and intensified the probability of rate cuts in the Summer months. March was a busy period for corporate results, which were in line with expectations for the majority of the Fund’s holdings. Outlook statements for 2024 were mixed, with sectors like RMI and consumer discretionary yet to see a pickup in demand. Green shoots have emerged in other areas, such as housing transactions, but most corporates don’t anticipate an improvement in trading until the second half of the year.
Performance benefitted from bids for two of the Fund’s core holdings, Spirent and Mattioli Woods. Spirent has received opportunistic bids from two competing US trade buyers, with the shares depressed since the company reported its key telecoms customers were deferring the rollout of their 5G networks. Mattioli Woods was the recipient of a recommended offer by private equity, who continue to take advantage of depressed UK equity multiples. Leading detractors in the period were RWS, where the price was depressed by a large seller exiting their holding, Inspired was weak following in-line results and Future sold off in absence of any newsflow.
During the month we realised some profits from Mattioli Woods following the bid and trimmed Sigmaroc and Gamma into share price strength to manage position sizes. We topped up holdings in Morgan Advanced, Bodycote and GB Group at attractive levels and started a new position in Keywords Studios, the leading outsourcer to the video game industry.
1Sigmaroc | 3.3 |
2Gamma Communications | 2.8 |
3Globaldata | 2.4 |
4Premier Foods | 2.1 |
5Spirent Communications | 2.1 |
6Alpha Group | 2.0 |
7Auction Technology Group | 2.0 |
8Tyman | 1.8 |
9Conduit Re | 1.7 |
10Mattioli Woods | 1.7 |
11Inchcape | 1.7 |
12Next 15 Group | 1.6 |
13Brooks MacDonald | 1.6 |
14Accesso Technology Group | 1.6 |
15Foresight Group | 1.5 |
16Clarksons | 1.5 |
17Ascential | 1.5 |
18GB Group | 1.5 |
19RWS Holdings | 1.4 |
20Vesuvius | 1.3 |
Technology | 29.0 | |
Financials | 15.0 | |
Construction | 12.2 | |
Support Services | 11.8 | |
Media | 10.6 | |
Consumer | 6.3 | |
Healthcare | 4.4 | |
Industrials | 3.8 | |
Resources | 1.9 | |
Property | 0.8 | |
Telecoms | 0.4 | |
Aerospace & Defence | 0.3 | |
Cash | 3.5 |
UK | 96.5 | |
Cash | 3.5 |
Benchmark | N/A |
IA Sector | IA UK All Companies |
Morningstar category | EAA Fund UK Small-Cap Equity |
Launch date | 20 October 2014 |
Fund type | UK Domiciled OEIC |
Base currency | GBP |
Dividend frequency | Yearly |
Country of registration | UK |
The objective of the fund is to achieve long-term capital growth by investing primarily in a portfolio of fully listed and AIM traded UK equities.
Dealing line | 0345 305 4217 |
Administrator email | |
Dealing fax | 0845 280 0188 |
Dealing frequency | Daily |
Price frequency | Daily |
Settlement terms | T+3 |
Dealing cut-off time | 12 noon (UK Time) |
Valuation point | 12 Noon |
Regular savings | Yes |
ISA eligible | Yes |
SIPP eligible | Yes |
EMX dealing codes | CHEVTN |
Calastone dealing | Yes |
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