Overview

Mike Savage
Partner, Special Sits

What is it?

The Killik & Co Special Situations Portfolio is a managed service that invests specifically into small and medium sized UK companies offering the potential for above-average capital growth.

Why Killik & Co?

The Special Situations team have over 40 years’ experience in the UK small cap arena with an enviable track record.

The service seeks returns by looking for companies that have the ability to increase in value regardless of the wider economic backdrop.

Access to investment opportunities not usually made available to retail investors, including new issues and secondary fundraises.

Who is it right for?

The Special Situations Portfolio is suitable for anyone looking to invest for the medium to long term, prepared to take a higher degree of risk, and looking to invest in to small and Mid-cap companies in pursuit of capital growth.

We would guide clients towards a £30,000 minimum investment, however this should make up the ‘high-risk’ element of a well-diversified portfolio.

The Service

The Special Situations team’s expertise spans over 40 years across the UK small cap markets.

The Service is not structured as a unitised investment vehicle, rather a collection of segregated accounts of between 15-25 stocks per portfolio. This structure allows the team to be more nimble, able to buy and sell smaller amounts of shares which means in theory, they are able to move in and out of positions more quickly.

The team construct portfolios on a bottom up basis, assuming a neutral macroeconomic backdrop, which means avoiding investments in the most cyclical sectors such as financials and property.

The structure of this service means we remain utterly transparent and accountable at all times, because as a client your portfolio remains segregated, not reduced to a unitholder number.

Find Out More

To find out more about our Special Situations Portfolio, please contact your nearest branch or contact our Head Office on info@killik.com or +44 (0) 20 7337 0777 or alternatively fill out the form below to download the brochure.

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Unrivalled access

Due to the breadth of relationships built over 40 years in the industry, the team has access to a variety of opportunities that are not normally available to retail investors, such as access to new issues (IPO’s) and secondary fundraises.

In addition to your Investment Manager, clients are encouraged to contact the team directly, whether it is to discuss portfolios, individual stocks or the smaller companies’ universe in general.

Strategic Approach

The Small Cap market is one that remains relatively un-covered by the majority of traditional institutional investors, due in part to the smaller trade sizes and lower levels of liquidity.

The lower level of coverage from the wider analyst community means that our team is at a real advantage. To put it simply, we believe there are bargains on offer simply because there aren’t enough people out there looking for them.

Broadly speaking, the Special Situations team look for companies that fall into the following categories:

Firstly, by discovering companies that are trading on unjustifiably low valuation multiples – so called “re-rating stocks”; and secondly, by seeking companies that we believe are set to grow ahead of the expectations of the market – i.e. “upgrade stocks”.

We are investment managers, not speculators, and it should be noted that all investments are made on the basis of our normal 18-24 month investment horizon.

Risk Factors

Investments in smaller companies carry a higher degree of risk than investing in the more liquid shares of larger companies. 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 (typically 15-25) 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.

As is the nature of investing, the value of your investments will fluctuate and you may not get back as much as you originally invest.