A few stats:

• We conducted 151 meetings with management, across video calls, in person and even better at site-visits at their offices/factories.
• We met with and presented to over 100 clients and prospective clients across the UK, from Belfast to Knutsford and Cheltenham to Fareham.
• We concentrated the portfolio further, starting the year with 45 holdings and ending with 38.
• We exited 11 positions and initiated in 4 new ones.
  • Gone from the portfolio are Rio Tinto and Smith & Nephew (both after 21 years), as well as Melrose Industries, TT Electronics, RWS Holdings, Hargreaves Lansdown, Kainos and IntergraFin
  • Welcomed to the portfolio are kitchen suppliers Howden Joinery, owner behind Sunbelt Rentals, Ashtead Group, and video game services business Keyword Studios.
• Out of the remaining 34 holdings, 32 were added to over the course of the year.
• For a fund that places more emphasis on Industrials (sector -2.5% in 2022), Consumer Discretionary (-6%) & Staples (+5%) and Media/Tech (-17%), it was a tough time compared to Energy (+47%) and Materials (+21%) businesses.
• Performance followed suit with the fund ytd -18%, versus the FTSE 100 (0%) and The FTSE 250 (-21%)

Looking forward to 2023, our underlying holdings are making positive noises with indications that 2023 will be a better year. Just for example; Greggs are continuing to see sales soar, mitigating their rising input costs. Last month, Beazley raised a further £385m to support underwriting expansion in its growing cyber and speciality offerings. Games Workshop announced a bumper film and television rights deal for their Warhammer series with Amazon Prime. And last week Ashtead Group announced that they fully expected their full-year results to be ‘ahead of our previous expectations’ with growing volumes across their rental markets.

We wish you all a very merry Christmas and a happy (and hopefully) prosperous new year.

*all performance is Year to Date up to 19th December.

The above article has been prepared for investment professionals. Any other readers should note this content does not constitute advice or a solicitation to buy, sell, or hold any investment. We strongly recommend speaking to an investment adviser before taking any action based on the information contained in this article.

Please also note the value of investments and the income you get from them may fall as well as rise, and there is no certainty that you will get back the amount of your original investment. You should also be aware that past performance may not be a reliable guide to future performance.