Giles Hargreave is renowned for running successful smaller companies funds such as Marlborough Special Situations and Marlborough UK Micro-cap Growth. Less well known is that he and his team also run two Venture Capital Trusts (VCTs) investing in the AIM market - Hargreave Hale AIM VCT 1 and AIM VCT 2. New share offers for both VCTs have recently been announced.
VCTs are higher risk long-term investments that are not suitable for mainstream investors, or those who need access to their money in the short term. For more information on VCTs, the risks, and the tax reliefs available, please refer to the VCT section of our website. The risks of each VCT are described in more detail in its prospectus.
The Alternative Investment Market (AIM) is the junior market of the London Stock Exchange. The listing requirements here are not as stringent as the main index. Yet many opportunities can be found in small, dynamic businesses which are growing quickly, and it can be a lucrative place to invest with the right expertise, though it is risky.
Giles Hargreave and his team have an enviable long-term record in smaller company and AIM investing. Although results have been more mixed in their VCTs, partly due to having a more concentrated, less frequently traded portfolio and holding more cash, I believe the quality of the investment team should shine through in the long run.
Typically, the VCTs provide capital to smaller companies listed on AIM in order for them to expand their businesses. However, there are also some unquoted investments in the portfolios such as restaurant operator Mexican Grill. The portfolio will also contain some non-VCT qualifying smaller companies in sectors such as oil & gas as well as opportunistic purchases of larger company shares and the Marlborough Special Situations Fund. Technology and healthcare are key sectors for both VCTs, though there is good diversification across a number of areas.
If you're interested in either of these VCT share issues please refer to the VCT section of our website for further details and the prospectus, which should be read before investing.
If you proceed with an application we'll assume that you regard yourself as a suitably sophisticated investor. If you have any doubts you should seek expert advice. Please note tax rules can change and benefits depend on individual circumstances.