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Sell: 131.28p | Buy: 135.34p |
Change 0.93p (0.71%)
Correct as at 21/09/2018

Sell: 134.32p | Buy: 138.47p |
Change 0.95p (0.71%)
Correct as at 21/09/2018

HL Select UK Growth Shares

Our investment strategy

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Important information - The value of this fund can fall as well as rise so you could get back less than you invested, especially over the short term. The information shown is not personal advice, if you are at all unsure of the suitability of an investment for your circumstances please contact us for personal advice. The HL Select UK Growth Shares Fund is managed by our sister company HL Fund Managers Ltd.

Companies in charge of their own destiny

We believe businesses with exceptional products and services can create a virtuous circle of customer loyalty, pricing power and financial strength that allows them to prosper and grow whichever way the economic winds are blowing.

The characteristics we look for can become self-reinforcing, giving companies the power to reinvest back into the business, stay at the forefront of their industries and continue to grow year after year. That can make a big difference to their value over the long term.

We focus on quality businesses with robust balance sheets and durable profits

What we look for in companies

The potential for long-term durable growth is our main objective. Not every holding will tick each box but most of the companies we invest in will share many of these characteristics:

1

Exceptional products & services

We want to invest in businesses that have an edge over their rivals - perhaps a brand, or intellectual property - that customers can’t find elsewhere.

2

Recurring revenue

When customers keep coming back, it's easier to generate good returns.

3

High margins

We believe high profit margins indicate the strength of the company’s offering. High margins are not earned by accident.

4

Healthy returns

A high return on capital allows a business to fund its own growth.

5

Cash generation

Businesses have to keep reinvesting to stay in contention. Strong cash flow gives the freedom to do this, without sacrificing financial strength.

6

Little or no debt

We prefer businesses to be strong enough to sail through choppy waters, even when it looks like a mill pond out there. Too much debt can leave a company exposed in a downturn, whereas the financially strong can take advantage of opportunities in the upturn.

Every stock should count

We choose stocks on merit, not mass. We hold around just 30 large, medium and higher risk smaller companies. This means each holding can make a real difference to performance, although it is a higher risk approach.

In the near term, markets can be unpredictable. But the long term is often surprisingly clear. Trends like ageing populations or the growth of e-commerce play out over long periods of time. We try to find businesses on the right side of these trends and hold them for years.

We don't mind paying the right price for quality, because great companies can compound their earnings, far out into the future.

Meet the Fund Managers

Steve Clayton, Fund Manager

Steve started working in the City in 1987, after gaining an economics degree from the University of Cambridge, and has worked in the stock market ever since. Early experience at Royal Life, NPI and Halifax eventually led to a Partnership at Mirabaud Securities LLP. That move saw Steve switch from running institutional portfolios to providing leading fund managers in the UK, Switzerland and North America with advice on stock selection and strategy. Steve joined Hargreaves Lansdown in 2014 to provide equity research to our clients and create the HL Select UK Growth Shares Fund range.

Charlie Huggins, Fund Manager

After gaining a First in Biochemistry at the University of Oxford, Charlie joined Hargreaves Lansdown in 2011. Working within the Investment Research team, Charlie has focused on equity research and investment management, gaining his CFA charter along the way. Since Steve Clayton joined HL in 2014, Charlie has worked with Steve to develop HL’s equity fund management capabilities.


Follow Steve & Charlie's strategy

HL Select UK Growth Shares - August review

Despite the wider market’s decline, the fund rose by 0.58% in August, with performance aided by our lack of commodity exposure and a strong showing from the likes of GB Group and Burford Capital. Read more

Monthly roundup

Growth versus value

There are many ways to go about investing but, in the end, investors all want the same thing. To buy a business for less than it’s worth. Read more

Managers' thoughts

HL Select UK Growth Shares - July Review

July provided little summer respite with many of our companies reporting results. Read more

Monthly roundup

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