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Initial Screening
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- Minimum Market Cap £100m
- Remove companies with limited free float and low trading volumes
- Verify Business Relief qualification
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Risk Control
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- Central to our investment process and philosophy
- Applied at both portfolio construction and company selection levels
- Carefully assess downside risk potential
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Portfolio Construction
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- 30 to 40 stocks
- 1% cash holding
- Broad set of industry and business exposure
- Wide range of company sizes
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Company Selection
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- Each company seen as a long-term, owned, investment
- Strong and proven management team
- Unique or leading technology/IP
- Sustainable business with structural or secular growth potential
- Robust balance sheet. Healthy cash generation, profitable, and dividend paying
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Ongoing Scrutiny
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- We meet or speak to senior company management at least once a year
- Daily overview of company news and analyst commentary
- Assess company plans for growth and likely impact on Business Relief qualification
- Watchlist of 20-30 AIM companies is maintained as potential new portfolio holdings
- Stocks can be quickly added/replaced in the portfolio, especially where Business Relief qualification is threatened
- We engage the services of a third-party tax adviser who annually assess all AIM companies held in our portfolio for Business Relief qualification.
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