After a rough patch for UK equities things are finally looking up, according to Fraser Mackersie of Unicorn Asset Management.
Mackersie is co-manager of the Unicorn UK Income fund Unicorn UK Growth, Unicorn UK Income and Unicorn UK Smaller Companies Fund alongside Simon Moon.
He focuses on UK small and mid caps and makes a case for active management, which he believes there will always be a place for.
Mackersie told FT Adviser: “It has been tough, it is frustrating for us and for the management teams of companies but it feels like we are coming out of it, it definitely feels better.
“Some of our funds have rallied 30 per cent from the October lows.
"Investor appetite dwindles when you’ve got other markets that are doing better and UK assets are often unloved.
“I don’t think advisers should ignore the quality that exists in the UK, they are trading at large discounts compared to history and market peers. "
Across its range of funds Unicorn currently manages £850mn, this is a drop from around £1bn before the market became tougher, said Mackersie.
The firm only uses active management, so unsurprisingly Mackersie thinks it is the way to go.
He said: “There is always going to be a pace for true active management, there will always be a need for specialists in specific areas. We in no way replicate the index at all.”
The fund manager said a big part of the job is going out to meet companies the funds are invested in.
“We spend a lot of time meeting companies and updating investors on what we are doing,” he said.
“Most management teams meet on a regular basis and go on site visits.
“You could have the best company in the world but you need to have the right people running it.”
He added: “We look for consistency of approach, a long term message and strategy and if they are showing discipline.
“You need to have a strong CEO and CFO. A strong, overbearing one on either side is not a good sign.”
tara.o'connor@ft.com
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