Bath/Head Office:
London Office & Quoted Equity Team:
Edinburgh Office & European Quoted Equity Team:
Chelverton Funds

Chelverton Funds

Our Capabilities

As a team, we specialise in UK small and mid-cap companies where we believe we can add long-term value.  We are the quintessential investment ‘boutique’ as we do not invest in the largest 100 stocks, a rather overcrowded marketplace.  We manage distinctive, but complementary funds, including both income-focused and growth-focused Open-Ended Companies and Investment Trusts.  A more detailed description of each fund is set out below.

Our belief in small and mid-cap

Smaller companies are essentially those that comprise the lowest 10% in terms of the value of the market, and, as a consequence, they attract relatively little attention. However, in the long term, this part of the market has outperformed the main market on a total return basis. When this out-performance is compounded, the investment case becomes even more compelling.

It is entirely logical that the smallest part of any business is going to attract the least interest, and so it is with the broking community in the City.  It is simply much more lucrative to chase bigger deals.  This results in relatively little coverage of a lot of the 1,500 or so UK small and mid-cap companies, which leads to significant opportunities to exploit pricing inefficiencies.  We are in a good position to be able to do this as 100% of our time and effort is concentrated in this area.

The increasingly short-time horizons of some participants in the market can lead to shares frequently being mispriced for those managers with a medium-term or longer-term outlook.  Investing in small and mid-caps naturally puts us in this camp and our in-depth knowledge of the companies in which we invest allows us to take advantage of growing short-termism.

For the reasons outlined above, share price movements can often be quite sharp, in both directions, but our investment process seeks to look through this short-term ‘noise’, as often these price changes will have nothing to do with the company itself. Whether we have our income or growth hats on, the one age-old adage to which we adhere is ‘cash is king’.  For our income funds we look to invest in ‘dull but worthy’ companies and for our growth funds we look for more dynamic businesses.  In the former, it is imperative that there is enough cash to pay good levels of dividend to shareholders and, in the latter, that there is sufficient cash to fund the growth of the business.

We have a very experienced team and an investment approach, which we believe allow us to identify under-priced assets.  By concentrating on our niche, we aim to deliver strong performance to our fund holders.

Our Investment Trusts

Investment trusts are quoted on the London Stock Exchange and hold a portfolio of other companies. They have a fixed number of shares, the price of which is subject to demand rather than the underlying value of the portfolio.

Our Open Ended Companies (OECs)

These funds hold a portfolio of companies, which are valued daily. Units can be issued to new investors, or redeemed by existing ones, allowing the fund to expand or contract. Transactions are priced at the net asset value of the portfolio.

Our Quoted Equity Team

  • David Horner

    Managing Director

    David is an acclaimed fund manager, specialising in small and mid-cap quoted investment and SME unquoted investment. He has 30 years’ experience in corporate finance […]
  • David Taylor

    Fund Manager

    David is a fund manager with specialist expertise investing in companies with sub-£1bn market capitalisations. He began his career as an analyst in the […]
  • James Baker

    Fund Manager

    James joined Chelverton Asset Management in June 2014 to manage MI Chelverton UK Equity Growth Fund. A history graduate from Cambridge University, he has over […]
  • Dale Robertson

    Fund Manager

    Dale has over 20 years’ experience as an equity analyst and fund manager of European equities.  Most recently, at Edinburgh Partners, Dale built a […]
  • Gareth Rudd

    Fund Manager

    Gareth also has over 20 years’ experience in equities, both as an asset manager and also as a research provider. He began his investment […]
  • Edward Booth

    Fund Manager

    Edward joined Chelverton Asset Management in 2016 as an Assistant Fund Manager.  Having graduated from the London School of Economics with a degree in Economics […]
  • Oliver Knott

    Fund Manager

    Oliver joined Chelverton Asset Management in January 2020 as an Assistant Fund Manager. He has extensive experience in UK small and mid cap equities […]
  • Henry Botting

    Fund Manager

    Henry joined Chelverton Asset Management in August 2021 as an Assistant Fund Manager. Prior to joining, Henry worked on the Equity Sales team at […]
  • Sally Clifton

    Head of Responsible Investing

    Sally has over 20 years’ experience working in and around asset management. Trained as an equity analyst, she has worked for a number of […]
  • Phoebe Baker

    Responsible Investing Trainee

    Phoebe joined Chelverton in March 2023 as a Responsible Business Trainee. She has a 1st class honours degree in Biomedical Sciences from The University […]
  • Gregor Macdonald

    Corporate Governance Manager

    Gregor has over 27 years experience in the UK Smaller Companies sector starting with Standard Life Investments in 1987, where his time was split […]