Unicorn UK Growth B Inc
Rated Fund 2018-19. Nimble fund with a technology focus
Fraser Mackersie joined Unicorn Asset Management in 2008 and has been manager of the Unicorn UK Growth fund since 2011, when it was just £6 million in size. It has since grown to £69 million, having doubled the value of its assets over the course of 2017 and 2018.
It remains a minnow in fund terms, but because Mackersie does not hold more than 1% of the issued equity of any individual stock in the fund’s portfolio, he believes his approach is highly scalable.
The fund has 44 holdings and a clearly defined strategy of identifying innovative companies with exposure to long-term structural growth trends.
Mackersie follows a high-conviction, multi-size approach to investing, though the manager tends to find the more attractively priced growth opportunities further down the market capitalisation scale. The fund’s modest size means its smaller quoted companies can make meaningful contributions to performance from an early stage.
Investors have benefited from its holdings in the software and computer services sector, which has historically accounted for around 30% of assets. However, this fell to less than 18% during 2018 after the fund got caught up in the US technology stock sell-off.
UK markets were dragged into the down-draught and the share prices of many Aim-listed companies, in which the fund has significant weightings, were particularly badly affected.
Unicorn Asset Management is a generalist investor, but it has a longstanding strategy of excluding the oil and gas, mining and pharmaceutical sectors as part of its investment process. Loss-making companies are also screened out at an early stage.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
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