Marlborough UK Micro-Cap Growth A Acc

•  Invests in superior growth potential of the UK’s smallest listed companies
•  Award-winning investment team
•  More than 1,000 UK micro-cap companies to select from
•  Large investment team with almost 200 years’ combined experience
•  Highly diversified portfolio of around 200 stocks to manage risk

The Marlborough UK Micro-Cap Growth Fund invests in the superior long-term growth potential of some of the UK’s smallest listed companies – many of which are highly innovative businesses or niche players.

Co-managers Giles Hargreave and Guy Feld invest primarily in companies with a market capitalisation of £250m or less at the time of purchase and a considerable proportion of the portfolio will be in sub-£150m companies.

One of the advantages of investing at this end of the market cap spectrum is the sheer number of companies to choose from. The AIM, FTSE SmallCap, FTSE Fledgling and FTSE techMark indices are home to well over 1,000 companies operating in diverse fields ranging from ‘big data’ management and software development to luxury soft drinks and pharmaceuticals.

Almost 200 years’ experience

The managers work with an investment team of more than a dozen people. Between them they have almost 200 years’ experience of investing in smaller companies and this depth of resource is essential to the managers’ strategy.

Giles and Guy are stock-pickers. Using their own primary research and meeting company management teams, they identify businesses with growth potential not yet reflected in the share price. Historically, small companies have grown their earnings faster than larger ones and the pair see no reason why this trend should not continue.

Highly diversified to manage risk

The size of the team also means they have the resources to manage a highly diversified portfolio of around 200 stocks with even the largest positions rarely representing 2.5% of the fund. To begin with, positions will usually be less than 1% and the managers will then average up as they see evidence of a company successfully implementing its strategy. This diversification helps to manage stock-specific risk and overall fund volatility. 

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.