Exceptional growth potential investment process

For Professional Clients only. Not for distribution to or to be relied upon by Retail Clients

The Marlborough UK Multi-Cap Growth Fund has the freedom to invest in UK-listed companies of all sizes, which means it has a potential investment universe of more than 2,000 stocks.

However, Manager Richard Hallett holds a conviction portfolio of only 45-60 companies.

In selecting stocks for the portfolio, Richard and his team employ a rigorous investment process – and when they invest it is with the intention of holding for the long term. Not all companies will succeed however, and past performance should not be used as a guide to future returns.

The process is based on the concept of Exceptional Growth Potential and employs the team’s stock-picking skills to maximum effect as they seek to identify companies that meet three important criteria.

What gives a company Exceptional Growth Potential?

Macro-agnostic approach

While Richard and the team closely monitor the macroeconomic backdrop, one of the key features of their strategy is that they avoid making investment decisions based on macroeconomic forecasts, because they are so difficult to get right on a consistent basis.

Instead they adopt a macro-agnostic approach and hold a portfolio of companies they believe can continue to grow their earnings without relying on supportive macroeconomic tailwinds. Businesses that meet the demanding criteria for inclusion in the portfolio have Exceptional Growth Potential.

Tactical allocation of up to 10%

Alongside the Exceptional Growth Potential process, Richard and the team have the flexibility to allocate up to 10% of the fund to non-core investment themes to take advantage of shorter-term cyclical opportunities.

 

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