Marlborough Special Situations A Acc

  • Harnesses the superior long-term growth potential of smaller companies
  • Award-winning fund management team
  • Around 2,000 UK smaller companies to select from
  • Large investment team with almost 200 years’ combined experience
  • Highly diversified portfolio of around 170 stocks to manage risk 

The Marlborough Special Situations Fund invests in the UK’s smaller companies – a fertile hunting ground for stock-pickers, with around 2,000 companies to select from, including those listed on AIM, the FTSE SmallCap, FTSE Fledgling and in the lower reaches of the FTSE 250.

The number and diversity of opportunities dwarf those to be found higher up the market cap spectrum and to identify those that are most attractive, the fund’s co-managers, Giles Hargreave and Eustace Santa Barbara, work with an investment team of more than a dozen people. Between them the team have almost 200 years’ experience investing in UK small and mid-caps and this depth of resource is essential to the managers’ strategy. 

Superior growth potential

First and foremost Giles and Eustace are stock-pickers, and the size of their team means they can exploit the under-researched nature of smaller companies by conducting their own fundamental analysis to identify businesses with growth potential not yet priced in by the market. Historically, smaller companies have grown their earnings faster than their larger counterparts and the managers believe the potential exists for this trend to continue.

Diversified portfolio

The size of the team also means they have the resources to manage a highly diversified portfolio. Marlborough Special Situations holds around 170 stocks, with even the largest positions rarely exceeding 2% of the fund. Initial positions will usually be less than 1% and the managers will then average up as they see evidence of management successfully executing on their stated strategies and they gain confidence in the investment thesis. Holding such a diversified portfolio reduces stock-specific risk and as a result volatility is below the sector average.

Risk Warning: The value of investments and the income from them may fall as well as rise and you may not get back the amount you originally invested. The Fund invests in smaller companies which carry a higher degree of risk than larger companies. The shares of smaller companies may be less liquid and their performance more volatile over shorter time periods. The Fund invests mainly in the UK. Therefore it may be more vulnerable to market sentiment in that country.