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Ken Wotton: Small companies, big ideas

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Ken Wotton speaks to Portfolio Adviser about how his approach to investing in smaller companies gives him a competitive edge.

The LF Livingbridge UK Micro Cap Fund, which Wotton co-manages with Brendan Gulston, holds 40-50 UK-listed stocks and aims to achieve long-term capital growth. Since launching in May 2009, the fund has returned 347.4%, outperforming the 314.1% average of its peers in the IA UK Smaller Companies sector.1  

Wotton allocates around 65% of the portfolio to micro-caps with a market cap of less than £250m and about 31% to small caps with a market cap of up to £1bn. In this article, he discusses how to navigate volatility in this typically under-researched part of the market and how his smaller company focus lends itself to income investing as well, in the LF Livingbridge UK Multi Cap Income Fund.

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For Professional Investors Only. Past performance is no guide to the future. The value of investments and the income from them can fall as well as rise and you may get back less than originally invested. These are the views of the manager at the time of writing (July 2018) and may be subject to change.

 

  1. Source data: FE Analytics, LF Livingbridge UK Micro Cap Fund, A share class, Accumulation units, since launch in 19 May 2009 to 30 June 2018. IA UK Smaller Companies Sector peer group performance average calculated over same period. LF Livingbridge UK Multi-Cap Income Fund, C share class, Accumulation units, since launch in 1 June 2017 to 30 June 2018. IA UK Equity Income Sector peer group performance average calculated over same period.

All Livingbridge data as at 30 June 2018.