Bath/Head Office & Unquoted Equity Team:
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 FTSE100 stocks, a rather overcrowded marketplace.  We manage four distinctive, but complementary funds, including both income-focussed and growth-focussed Open-Ended Investment Companies (OEICs) 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, since 1955, this part of the market has outperformed the FTSE All Share Index by 3.7%* per annum, on a total return basis.  When these returns are 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 have been able to deliver strong performance to our fund holders.

*As measured by the Numis UK Small Company Index.


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 Investment Companies (OEICs)

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 an award winning fund manager, with specialist expertise investing in companies with sub-£1bn market capitalisations. He began his career as an analyst […]
  • 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

    Assistant 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 […]
  • William van Heesewijk

    Business Development Director (Quoted Equity)

    William began his career with Lloyds Bank International Limited in 1981, where he worked for both the merchant banking and investment management arms. He has […]