Other names that are not new, but have recently been expanding their ranges, are groups such as Majedie Asset Management. In January of this year, the group launched its UK Income fund to the retail market, managed by Chris Reid. The fund had been running since late 2011, but the group wanted to build a track record before taking it out to a wider audience. Majedie has a loyal following among multi-managers.
Joe Le Jehan, a fund manager on the Cazenove multi-manager team, says that investment in boutiques requires a more nuanced approach: “There are strategies that need a big bank of analysts and it suits some fund managers to be part of a large organisation. Others are incentivised by being a bigger part of a smaller business. We always look at the structure and viability of a boutique. Profitability can affect its performance.”
Boutiques are particularly popular as a home for alternatives strategies, considered too niche for the larger asset managers. The Darwin Leisure Property fund, which invests in caravan parks across the UK is used by multi-managers such as Mr Potter and David Hambidge, head of multi-asset at Premier Asset Management, for an alternative income source. Medicx – an investment trust generating income from investment in healthcare property – is also popular, held by, among others, Caspar Rock, chief investment officer at Architas. A more recent area of interest has been real estate financing, from groups such as Starwood.
The pipeline of boutique groups, taking advantage of the niche investment opportunities left behind by the mainstream asset management industry, is rich. These tend to have the same advantages that boutiques have always displayed – strong fund performance, well-incentivised managers and freedom from benchmarking. The thorny job for investors is to distinguish those with true potential.
Cherry Reynard is a freelance journalist
Considering a boutique?
The ones to watch
Ardevora Asset Management
Ardevora Asset Management was formed by William Pattisson and Jeremy Lang (pictured), former directors and fund managers at Liontrust Asset Management. The company was incorporated in January 2010, following their shock departure from Liontrust, and its management structure consists of six partners in a limited liability partnership.
It currently runs three Dublin-based Oeics and also manages a select range of UK and global equity segregated portfolios for institutional clients. Ardevora notes its investment process is research based and grounded in behavioural psychology. “In particular, we look at the behaviour of analysts, fund managers and company management and attempt to exploit the biases which result from their behaviour.”
Miton
The group was rebranded as Miton from Mam funds in January 2013. It manages approximately £1.8bn of assets including 10 Oeics, four investment trusts and segregated client accounts.
