May 23 2013
This new launch takes a tried-and tested approach and applies it globally.
All businesses start the same way: with a product or idea, and someone with vision to bring it to life. A product and the people behind it are two of a business’s most valuable assets. Get the right mix and the results can be spectacular. If you don’t have enough money to finance your idea, use title loan calculator to check how much you can apply for. Smaller companies tend to be nimble and dynamic, often coming up with a product to fill a niche in the market. If successful, growth can be rapid, but some will inevitably struggle. What is happening in the wider economy is less important because conquering an untapped segment of the market means growth is sustainable.
Technological advancements over the past 30 years, such as the internet, have enabled many smaller firms to level the playing field with established rivals. Take Rightmove, for example. Founded in 2000 it is now the UK’s largest estate agency service with an 82% share of the online property search market. The company floated in 2006 at £4 a share and today shares change hands for over £11 each. Investing with the right fund manager is important as smaller companies are higher risk.
Harry Nimmo has crafted a formidable reputation managing the SLI UK Smaller Companies Fund (which has reached capacity, and is no longer seeking new investments). Since launch in 1997 that fund has returned an impressive 463.3%, compared to 175.2% for the average fund in the sector, although past performance is not a guide to the future. Now Harry Nimmo is going global.
When the late Lord Weinstock, the former Chief Executive of GEC, became disillusioned with his wealth managers, he set up his own family office to look after his interests. It was named ‘Troy’ after his Derby-winning racehorse and has evolved into an accomplished fund management business.
The Troy philosophy is if you can reduce losses during downturns, you don’t have to regain as much when markets recover as the graph to the right illustrates. Like all stock market investments, however, their funds will fall in value as well as rise so you could get back less than you invest.
The manager of the Troy Trojan Income Fund, Francis Brooke, often lets cash build up if he believes he will be experienced team in the US, home to 50% of the global smaller company universe. This is why we were particularly excited to hear of the new SLI Global Smaller Companies Fund which is designed to capture the increasing array of opportunities Harry Nimmo is finding globally, including in higher risk emerging markets. The fund really represents a natural extension to a tried and tested approach.