Raynar Portfolio Management is today launching its first fund to be managed by Philip Rodrigs, Portfolio Adviser can reveal.
The Raynar Flagship strategy will “predominantly” invest in UK equities “focusing on the smallest market cap segments appropriate for the size of the portfolio”, a press release said.
But it will also be able to invest in other areas of the market.
“Cognisant of managing liquidity, Flagship’s particular design allows for the flexibility to reduce exposure to equities in favour of other assets with the aim of preserving capital until more favourable investment conditions arise,” the release said.
These could include ETFs, bonds, commodities, derivatives and swaps.
The launch follows hot on the heels of the Raynar Enhanced strategy, which the firm unveiled in February and is managed by Matthew Taylor.
How the fund will navigate liquidity
Investors will be able to purchase units in the Luxembourg-domiciled alternative investment fund daily, but redemptions require 20-business days’ notice. The fund will only be available to professional investors.
Daily dealing funds investing in less liquid parts of the equity market have come under the spotlight due to the Woodford Equity Income fund suspension last year.
That has prompted some people in the investment industry to question whether it may be difficult for new boutiques, like Raynar, to launch in the aftermath of Woodford.
In an interview with Portfolio Adviser, Rodrigs said: “Launching a new business, there are always challenges to be met, which is why achieving today’s major milestone is so important for us. I have enjoyed pulling together all of the different aspects you need for a successful business.
“During my career, I’ve met thousands of directors and CEOs. There have been some very inspirational people that have inspired me to want to create a successful business.”
The Raynar Flagship strategy will not be available to retail investors, unlike the Woodford Equity Income fund.
Rodrigs also addressed his dismissal from River & Mercantile, an action that he is disputing, due to alleged misconduct. He said this related to his attendance at an industry event. Approximately 20 other industry participants attended and, as far as he is aware, none faced the disciplinary action he did, he said.
Covid-19 and Brexit warrant cautious approach to UK equities
Rodrigs said the current market backdrop warranted a cautious approach to UK equities.
“It’s a tragic situation with the impacts of the coronavirus, both the interactions with the disease directly but also with the challenges that all individuals are facing with the lockdown and the uncertainty it’s brought,” he said.
“In this situation there are always businesses that can provide products and services that are helpful for people. We do like to focus on these unique firms that flourish for the benefit of all stakeholders.”
Brexit negotiations added additional uncertainty for the UK market, he said.
Rather than favouring any particular sector at the moment, Rodrigs said companies that were well set-up to deliver their products over the internet looked attractive at the moment.
Jon Garland, head of client relations, who joined Raynar in May, said in the press release he had been “very encouraged by the degree of interest and enthusiasm we have experienced regarding Philip’s return to the market”.
“With such a strong track record over his career to date, I am confident that his 20 years of experience in the UK equity market will hold Philip in good stead at the helm of Raynar’s Flagship.”
