The investment management arm of private-client broker Teather & Greenwood has launched a UK Smaller Companies fund, run by John Sweet from Perpetual.
The fund will invest in about 60 companies, each worth up to 800m, from Aim and the main markets. The fund will aim for firms with strong management, where directors have ‘significant equity stakes in their businesses’. Being able to see where companies’ revenue will come from, high entry barriers for the industry and strong balance sheets will also be crucial in the choice of companies.
Mark Dampier, head of research at Hargreaves Lansdown, says Sweet’s UK Smaller Companies unit trust launched at Perpetual in 1992 was in the top 25% of its peer group.