One thing that continues to surprise me
about small boutique firms which genuinely offer true growth potential is that they get overlooked by the majority of the market. One such firm is Saracen Fund Managers.
The firm is based in Glasgow and was set up in March 1999 with the launch of its growth fund. To date, the fund is a little under £14m in size. This is the only fund it manages but because it is small in size, this generally deters people from investing. This should not be the case. The fund's performance has been exceptional and it is the second best-performing fund in its sector since its launch.
Saracen consists of four people. Jim Fisher is the founder member and the manager of the fund. He is supported by Julian Fosh, who is assistant fund manager. The remaining two people oversee the compliance and acc-ounting side of the business. This may not be a huge team but investors should not always be fooled into thinking big is better as performance speaks for itself.
The investment approach is value driven. There are seven key things they look at when picking stocks. In short, these include valuations, analysis of trends, analysis of fundamentals, cashflow, earnings revisions, the life cycle of a company and the real economy. The fund typically holds between 25 to 50 stocks and has generally found the best stock ideas in small and mid caps.
Being investors in the fund and equity owners of the company, this is a superb incentive to do well and my inkling is that Jim Fisher and crew will make a success of both the fund and the company.
Meera Patel is senior analyst at Hargreaves Lansdown