She then looks for companies with long-term growth prospects, independent of short-term news flow or what is going on in the wider economy.
She finds many of her best ideas in the small-cap space – hence the bias – but reduces risk by being well-diversified: the fund currently has 98 underlying holdings. Investments are often held for many years but stocks will be sold when they become fully valued.
While the fund favours growth, its valuation discipline also means it is less extreme in terms of style than some of its peers, which has helped her outperform in different types of market environments.
Despite all this the fund has remained somewhat under the radar - a hidden gem delivering stellar returns.
Darius McDermott is managing director of FundCalibre
