A Sector Agnostic Investment Strategy

A quest for the best micro caps on the Alternative Investment Market

Find out more about what we look for in AIM companies, how we define AIM micro caps and how we invest.

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Active Investments

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Cash Position

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New Investments(3 months)

What We Look For

Investing is different for everyone. We all have different goals alongside a different attitude to risk. Most importantly though, we take a long term view. Whilst short term sentiment and trends are important we rarely take a short term trading approach with most companies being held for years rather than months.

There are a number of different factors that are important and a blog post goes into this in more detail, however primarily we are looking for companies with honest management and great growth potential and then use a lack of favour to buy stock when others are less interested.

How We Invest

We are confident in our ability to pick AIM companies which will deliver a multiple return on capital. Not necessarily in the short term as with AIM investing you need to understand liquidity and the majority of AIM companies will be restrictive in terms of a large sale of shares without impacting, sometimes significantly, share price.

As a general rule our preference is to acquire stock on the market but we do also participate in placings. As we are longer term investors placings need to be considered carefully as to how they are put together as we are not keen on the heavily discounted placing model aimed at flipping stock in the hope of a shorter term small gain. We are also keen on private placings with a small number of investors and are always researching possible companies to approach.

Communication

Investor relations is a tricky subject as far as AIM companies go. With very few large institutional investors most AIM companies rely on private investors and the majority of companies we follow, and also invest in, have a less than ideal approach to investor relations.

Simply this is an output from the regulatory pressures against AIM directors being petrified of going against the rules and sometimes not understanding the value of a loyal longer term private investor base and then on the other side private investors expecting more news flow and quicker results than is reasonable. Our view is that both parties need to meet in the middle to achieve long term success.

We want to invest in companies that go against the usual investor relations model and develop a more upfront and sensible dialogue with shareholders to turn shareholders from a perceived pain into the true asset they are. We want the companies that we invest in to work within the regulatory framework to take a best practise approach to investor relations and communications with all shareholders. We do also see the internet and social media forcing this change, resulting in those companies that do not embrace the modern world to miss out on the fairly limited capital pool available within the AIM market.

Talk To Us

If you are a director of a quoted AIM company or a broker working on behalf of an AIM company we would love to hear from you. We take a long term view on the majority of the positions we hold, typically with a minimum of 1 year, but normally looking to hold for at least 3 years. Over time we may reduce our position if we feel there are better growth prospects from other companies.

We are not a broker or financial advisor so we do not have a professional relationship with private investors or accept external capital. Please note that we are not interested from hearing about investment opportunities away from the Alternative Investment Market.