The fund, due to launch on 25th March, will focus on cash flow and hard assets rather than profits among its investment targets.
Investment decisions will be made on an absolute basis, with pricing compared to tangible assets and not to its peers or history.
George Godber will head up the fund, with Georgina Hamilton co-managing. Prior to joining Miton Godber co-founded Matterley, where he co-managed the Undervalued Assets Fund, while Hamilton was lead analyst for the fund.
Investments will be made based on the managers’ own bottom up research models, and they aim to identify under-researched and unloved companies whose value is yet to be appreciated by the market.
The fund will hold between 30 and 60 stocks, with a maximum of 25% in the small-cap sector.
Godber said: “In the post-credit boom world with lower growth and reduced liquidity, stock correlation is beginning to break down. We believe the current market environment is potentially the best investment opportunity through active stock selection in the UK equity space that we have seen in the past 35 years.
“This fund will aim to discover the very best value opportunities in the market, while trying to avoid stocks which look great value on the surface but on closer inspection are expensive. The fund will not be constrained by or replicate an index. The flexibility of this mandate will enable us to exploit these opportunities and generate significant returns for our clients.”
