Dowgate Wealth has integrated the UK-based investment team at Cape Wrath Capital along with the VT Cape Wrath Focus fund, which focuses on UK securities.
The fund will bring along manager Adam Rackley, who started Cape Wrath in 2015, and head of research Anders Jegers, who has been with the fund since 2016.
Previously, Rackley worked at the Alliance Trust and Montanaro Asset Management before managing equity research teams for CRISIL in Mumbai. Jegers started in equity in 1997, working at ABG Sundal Collier and Montanaro Asset Management.
Laurence Hulse, head of funds for Dowgate, said: “We are delighted to welcome Adam and Anders to the Dowgate Wealth investment team. Cape Wrath Capital’s appetite for value situations in the UK market is highly synergistic to the active approach we take at Dowgate with Onward Opportunities.”
Dowgate Wealth will incorporate the focus fund into its multi-boutique platform. As of 29 September, the portfolio held £9.3m in assets with almost 70% in small-cap businesses. The fund invests most heavily in industrials, at almost 30%, with top companies including Gulf Marine Services, Renewi, and Costain Group. It ranks 18 of 230 in UK all-cap rankings, and 4 of 50 for UK small-cap rankings.
“At Dowgate, we are strategically expanding our investment in UK equities because the rest of the world is shying away, which is part of the opportunity in itself,” Hulse said.
“For investors who remember multiples originated as a payback on investment calculation, there have not been many better times in living memory to be increasing exposure to UK equities.”
On 20 September, Dowgate also acquired Asian-based boutique asset firm BambuBlack. Dowgate was founded in 2020 and holds two funds, the SVS Dowgate Wealth UK Small Cap Growth fund, launched in March, and the SVS Dowgate Wealth European Growth fund. Hulse started with the company in 2022, and was chosen to run Onward Opportunities in March of this year.
“I am excited about working with Laurence and the hugely experienced team at Dowgate,” Rackley said.
“Bringing Cape Wrath Capital onto the Dowgate Wealth multi-boutique platform provides investors with Dowgate’s best-in-class operational infrastructure, alongside continuity in the Cape Wrath Capital investment philosophy and team. We are looking forward to scaling the fund, which will improve liquidity for clients, and further reduce our market-leading 45bp OCF.”