The managers want to see the potential for at least a 20 per cent increase from the current share price over a three to five-year holding period.
An environmental, social and governance screen is the final stage of building the 60 to 90 stock portfolio. Average position sizes will be around 1.5 per cent.
The team believe the best way to make money is to lose less when the market falls and to keep up when it rises.
Against a market notoriously difficult to beat, the team have built a strong track record, with the fund returning 100 per cent over five years, compared with 91 per cent for the Russell 2500, according to FE Analytics data showing total returns in sterling, for the five years to July 3 2019.
We like the labour-intensive process behind this fund to find those hidden successes in the small and mid-cap sectors.
The process is understandable, explainable and repeatable and a key differentiator is the strength and depth of the whole investment team.
It is a strong option for investors who have struggled to beat the market in the US.
Darius McDermott is managing director of FundCalibre
