Teviot’s investment universe is framed by the Numis Smaller Companies Index (excl. Investment Companies, including AIM). This spans UK listed companies up to a market capitalisation of circa £1.4bn. In practical terms, Teviot is unlikely to invest in companies capitalised below £20m. This leaves a universe of around 800 companies of which we will invest in a concentrated portfolio of typically less than 90 holdings. We will have active share of 85%+ and a diverse range of companies from which to select.
The fund will invest in the best value opportunities across this universe. We are agnostic to size and do not favour main listed companies over AIM. We only care about the value. In the current market, there is an appreciable discount applied to the smallest companies in the market. Many institutions shun companies capitalised below £250m for liquidity reasons or because they fall below the radar of broker research. This presents a great opportunity to engage in true UK small company, value investing.