Our Special Situations Service
Our Special Situations Service offers the potential to achieve capital and dividend growth through investing in small to medium-sized UK companies.
Designed for those who are interested in investing in small companies in the UK market, this service is ideal for clients seeking higher returns than those available from our core investing services. Although the companies in the service are all UK-listed, earnings are not bound to the UK market.
This service is suitable for investors with sufficient resources who are comfortable taking a higher-risk approach. We recommend this service makes up the higher-risk component of a well-diversified portfolio, with a minimum £30,000 investment requirement.
Enquire today
What is included with our Special Situations Service?
Our Special Situations Service is a fully managed service that provides clients with expert investment management and a portfolio of stocks in the UK Small Cap market. The main benefits that this service offers are:
- The potential to generate a greater return through accepting a higher level of risk
- Direct access to the Service Managers, in addition to your Investment Manager
- The ability to gain direct access to IPOs and secondary share placings
- A diversified portfolio of between 15 and 50 stocks
Capital is at risk
Please do remember that as with all investments, your capital is at risk. Special Situations is a higher-risk service and is not suitable for all investors.
What is unique about our Special Situations Service?
Our Special Situations Service invests in small to medium-sized companies in the UK that we believe have the potential to increase in value over the medium to long term, regardless of the wider economic backdrop.
With over 50 years’ experience combined investing in this market, the expertise and networks that our team have built throughout their careers provide access to investment opportunities not usually made available to retail investors, including new issues (IPOs) and secondary fundraisings.
We believe this provides a significant competitive advantage as this market remains uncovered by more traditional investors due in part to smaller trade sizes and lower levels of liquidity.
In addition to having a dedicated Investment Manager, clients of our Special Situations Service also have direct access to the Service Managers to discuss portfolios, individual stocks, and the smaller cap market.
Our Special Situations Service Managers
Mike Savage, Partner, Head of Special Situations
Mike joined Killik & Co in 2006 and fronts our Special Situations Service and UK Smaller Cap Investment Strategy.
Peter Bate, Partner, Portfolio Manager
Peter joined Killik & Co in 2007 and co-manages our Special Situations Service and UK Smaller Cap Investment Strategy.
How our Special Situations Service works
Our Special Situations Service operates as a collection of segregated portfolios rather than a unitised investment vehicle, which means that we remain transparent and accountable, as all of your investments are clearly visible at all times – and you are not reduced to a unit-holder number.
This structure makes it worthwhile for our team to buy and sell smaller numbers of shares than an identical sized unitised fund so we can take an agile approach to investing in this space and capitalise on opportunities to purchase attractive stocks.
We construct portfolios on a bottom-up basis, assuming a neutral macroeconomic backdrop, and look for companies trading on low valuation multiples and those we expect to grow ahead of market expectations. We also seek to avoid investing in more volatile sectors to mitigate portfolio risk.
Risks to be aware of
Please do remember that as with all investments, your capital is at risk.
Investments in smaller companies carry a higher degree of risk than investing in the more liquid shares of larger companies. In addition, AIM investments are generally more volatile in price than shares on the Official List and may be difficult to sell at a time of your own choosing.
Although the managers aim to mitigate stock specific risk though diversification, portfolios may be concentrated in a relatively small number of stocks and some may have as much as 25% invested in a single sector. This is a further contributor to the high-risk nature of the Service and precisely why this investment should be considered as part of a larger, well-diversified portfolio.
Sign up to our newsletter
Sign up to receive the latest news from Killik & Co, including our Market Update and Killik Explains educational videos, and be one of the first to hear about upcoming events and webinars. You can unsubscribe at any time and learn how we use your data in our Privacy Policy.