Liontrust UK Micro Cap
This fund applies the team's proven ‘economic advantage’ investment process to micro-caps - a part of the market that tends to be under-researched. Investing in Britain's smallest businesses, the fund follows in the footsteps of the successful Elite Rated Liontrust UK Smaller Companies and Liontrust Special Situations funds.
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Our Opinion
The Liontrust UK Micro Cap fund employs a proven investment process. It's rare for a smaller companies fund to have such a well-defined and disciplined framework. The alignment with management, focus on capital-light businesses which can scale quickly, and emphasis on company meetings are all very sensible. The team's track record with other funds that use this process is outstanding.
Fund Managers
Victoria Stevens, Co-Manager
Victoria Stevens joined Liontrust's Economic Advantage team in June 2015 as a partner and fund manager, focusing on research and analysis within the small-cap sector. Before this, she spent nearly five years at finnCap Ltd as deputy head of corporate broking. Prior to finnCap, Victoria was a senior reporter and diary editor at City AM. She studied Modern Languages at Oxford University.
Anthony Cross, Co-Manager
Anthony Cross joined Liontrust in 1997 and launched the Liontrust UK Smaller Companies Fund in 1998. Before Liontrust, he began his career at Schroder Investment Management as a graduate trainee, later becoming an equity analyst and joining the Smaller Companies team in 1994. Anthony graduated from Exeter University in 1990 with a degree in Politics.
Natalie Bell, Co-Manager
Natalie Bell joined the Economic Advantage team as a fund manager in August 2022, moving from the Responsible Capitalism team where she led engagement with investee companies. Prior to joining Liontrust in February 2021, she was at EY for over six years as part of their Corporate Governance team. Natalie was previously an Assistant Director at CBI, promoting the policy interests of a range of businesses across multiple sectors. Natalie graduated from University of Nottingham in 2009 with a degree in Politics.
Alex Game, Co-Manager
Alex joined Liontrust in 2024 as a Fund Manager on the Economic Advantage team. He joined from Unicorn Asset Management, where he spent nearly 10 years and co-managed a range of funds, including two UK equity funds and an AIM portfolio service. Prior to this Alex spent two years at Stanhope Capital as an Associate Consultant. He is a CFA Charterholder and graduated in 2010 from Durham University with a degree in Physics.
Matthew Tonge, Co-Manager
Matthew Tonge joined the Economic Advantage team in 2015 to help research and analyse companies across the small cap universe having worked closely with Anthony Cross for many years. Matt originally moved to the Liontrust trading desk in 2003 from Barclays Capital Asset Management. Responsible for execution across all the firm’s assets, in 2014 he was voted Mid-Tier trader of the year by The Trade magazine for his work in mid and small cap stocks, the inaugural year of the award. Matt graduated from the University of Birmingham in 2000, with First Class Batchelor degrees in Manufacturing Engineering (BENG) & Commerce (BCOM), winning the Gilbert Walker Prize in Engineering and Economics as top student in his year.
Risk
The fund invests in the smallest and most illiquid parts of the UK stock market, which can be volatile particularly during times of market stress. Nevertheless, the portfolio is well-diversified with around 60 holdings, which can help to lower potential volatility.
Company Description
Liontrust Asset Management was founded in London in 1995 and prides itself on the freedom it allows its managers, who invest in their own portfolios. Listed on the Stock Exchange since 1999, the company's culture is at the forefront of its values. The firm was awarded the Elite Provider for Equities Rating in 2015, 2016, 2019 and 2021.
Quote from the Fund Manager
Call us old fashioned, but we focus only on companies which already generate a profit. We don’t mind ‘jam tomorrow’, as long as we’ve got bread and butter today.
Victoria StevensCo-Manager
Victoria StevensInvestment process
Liontrust UK Micro Cap only invests in profitable companies. Like all other funds run by the economic advantage team, a company must have at least one intangible asset. These include a strong distribution network, high recurring revenues or a strong brand. Ideally, a company will have more than one of these characteristics. The team also looks for director ownership of at least 3% of the company. There are around 300 companies below £150 million which satisfy these criteria. The team then undertakes detailed fundamental research, preferring to avoid simplistic screens which they feel can be misleading. This is a long term, low turnover strategy.
Risk
The fund invests in the smallest and most illiquid parts of the UK stock market, which can be volatile particularly during times of market stress. Nevertheless, the portfolio is well-diversified with around 60 holdings, which can help to lower potential volatility.
ESG
ESG - Limited
The ‘Economic Advantage’ process employed by this fund looks for those businesses with distinctive, hard-to-replicate intangible assets. This does include the analysis of ESG factors, but more to identify the risks and use to help with position sizing, rather than as a screen. As such, the portfolio can invest in firms from all sectors and industries, though those with poor ESG credentials will be looked on less favourably than others, all other things being equal.
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