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Marlborough Nano-Cap Growth Class P - Accumulation (GBP)

Sell:189.65p Buy:189.65p Change: 1.62p (0.85%)
Prices as at 25 February 2020
Change: 1.62p (0.85%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 25 February 2020
Change: 1.62p (0.85%)
Prices as at 25 February 2020
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund features on our Wealth 50 list of what we believe are the best funds in each sector.

Giles Hargreave is one of the most experienced investors in UK smaller companies. And in our view he's also one of the best. In this fund he invests in some of the very smallest in the UK stock market. That also makes it higher risk.

We admire Hargreave's courage to look where other managers don't. We also like his well-honed process and the strong team he surrounds himself with. The fund's delivered excellent results for investors, although that's doesn't guarantee future performance. We think it deserves a place on the Wealth 50 list of our favourite funds.

Our view on the sector

Smaller companies in the UK are among the most innovative and exciting around. They can be pioneers of an emerging industry, and adapt quickly to new opportunities. We think their long-term growth prospects are compelling. Some will blossom into the giants of tomorrow. But others will struggle or fail altogether, so they are higher risk. Unlike larger companies such as Tesco or Vodafone, which might have dozens of analysts poring over their accounts, smaller companies tend to be less researched. They might only have one or two analysts covering them which creates opportunities for eagle-eyed fund managers to spot hidden gems. Over the past decade, innovations such as the internet have allowed smaller companies to level the playing field with larger rivals. Even so, they tend to be more sensitive to the UK economy then larger companies so you should expect more ups and downs along the way. We think UK smaller companies could be a great addition to a diversified portfolio able to accept the increased volatility.

Performance Analysis

Our research suggests Giles Hargreave is one of the best stock pickers in the business. He's added bags of value for investors and his long-term track record is superb. He's beaten the benchmark by an impressive distance over the course of his career. And unusually he's performed better than the market when the market's both risen and fallen. There have been times when he hasn't done well though, and past performance isn't a guide to the future.

This fund launched in 2013 and it hasn't been through a major market downturn yet. There will be times when smaller companies fall out of favour and a focus on the UK's smallest businesses means the fund's got the potential to be quite volatile. For investors comfortable with this we think the fund's got lots of potential.

Investment Philosophy

Hargreave believes the very smallest of UK companies are overlooked, even by some other managers in the UK smaller companies sector. He thinks this presents him with a big opportunity to find off-the-radar companies with excellent growth potential.

Process and Portfolio Construction

Giles Hargreave, along with co-managers Guy Feld and David Walton, scour the market for the very smallest UK smaller companies. A lot of this searching takes place in the FTSE AIM index. They'll also look in the FTSE Fledgling index, which is for companies too small to make it onto the FTSE All-Share.

They're supported by one of the strongest teams in the sector, who help the managers get a really good understanding of a potential company. They think meeting company management is a really important part of that process.

Once they've identified a company to invest in, they'll invest a little to begin with. If it does well they'll invest more. If it doesn't they think it's best to sell quickly and move on to the next opportunity.

It's more difficult to buy and sell shares in smaller companies. So the managers hold a cash 'buffer' to take advantage of opportunities to buy, and help them if they're finding it difficult to sell something. How much cash they'll hold can vary depending on how the stock market's doing.

question mark Manager Track Record Based on HL Quantitative Research

  • Marlborough Special Situations A...
  • Marlborough UK Micro-Cap Growth...
  • Marlborough Nano-Cap Growth A Acc
  • FTSE Small Cap (X It) TR

Fund Track Record

24/02/15 to 24/02/16 24/02/16 to 24/02/17 24/02/17 to 24/02/18 24/02/18 to 24/02/19 24/02/19 to 24/02/20
Annual return 5.99% 29.39% 18.59% 6.44% 13.52%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Marlborough Fund Managers was set up in 1986 and it launched its first unit trust in 1987. The company is privately owned and based in Bolton. It remains a small niche player but has some talented fund managers, including Giles Hargreave who we rate highly, and has expanded its fund range successfully.

Information about the fund

Fund manager biography

manager photo
Manager Name: Giles Hargreave
Manager start date: 14 October 2013
Manager located in: London

Giles Hargreave is head of the UK equity funds team and is a higly experienced small cap investor. He has managed Marlborough Special Situations since 1998 and now runs the fund jointly with Eustace Santa Barbara. Giles is also Co-Manager of the Marlborough UK Micro-Cap Growth and Marlborough Nano-Cap Growth Funds.

manager photo
Manager Name: Guy Feld
Manager start date: 14 October 2013
Manager located in: London

Guy, a graduate of Oxford University, has over 25 years' City experience dedicated to the research and fund management of small and mid-cap equities. He joined the investment team in 2003 and has a particular focus on the tech sector and other "New Economy" and growth companies. Guy co-manages the Marlborough UK Micro-Cap Growth Fund with Giles Hargreave.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account