FP CRUX UK Special Situations Fund

Richard Penny has managed the FP CRUX UK Special Situations Fund since launch in September 2018.

The Opportunity

An all market cap Fund with a bias towards mid cap stocks, and the opportunity for 20% investment outside the UK. The FP CRUX UK Special Situations Fund identifies high quality businesses with low levels of debt, run by strong management teams, where the business has an economic advantage with the potential for high returns on capital and growth.

The FP CRUX UK Special Situations Fund complements the existing FP CRUX UK Fund, as well as having an investment process similar to the FP CRUX European Special Situations Fund.

The Fund aims to achieve long-term capital growth through active management, by bottom-up stock picking. The FP CRUX UK Special Situations Fund is managed on a concentrated basis with the ability to invest through the cap scale with a maximum of 30% on the AIM market.

Fund Name FP CRUX UK Special Situations
Fund Manager(s) Richard Penny
LAUNCH DATE 1 October 2018
benchmark FTSE All-share Index
IA SECTOR UK All Companies
status UCITS (UK)
STRATEGY Long only equities
REGULAR SAVINGS Yes, only Class I: £100 per month minimum

The Fund has a concentrated portfolio of below 80 stocks, though typically this would be around 30-60 stocks. The Fund aims to achieve the investment objective by investing at least 80% of the value of its property in shares listed on UK securities markets in companies that are incorporated or domiciled in the UK. These companies may or may not be headquartered in the UK and may or may not have a significant part of their business activities in the UK. The Fund will typically have a core of mid cap holdings, some FTSE 100 names and a few carefully selected small caps including AIM. A maximum of 30% can be invested in smaller companies including AIM. There is no upper cap on individuals holdings sizes.

The Fund manager is not restricted in his selection of investments for the Fund by any geographic or industry specialisation.

The Fund has the flexibility to be up to 20% non-UK invested. This offers the manager the freedom to pursue specific investment themes and opportunities which are not available in the UK.

The Fund offers an income share class for those investors requiring a level of income although this is not a principle objective for the Fund.

The manager of the FP CRUX UK Special Situations Fund, Richard Penny, believes there are two ways to find businesses that are mispriced by the market:

  1. Buying a value situation, these could be distressed situations where confidence has been lost by the market and people, but where Richard has assessed the upside and believes that there has been a market overreaction.
  2. Where premier businesses that are better value creators can compound returns and grow strongly, where we believe it is not priced in by the market, this will tend to be in the more large and mid cap stocks within this portfolio.

For both ways finding an attractive entry point is central to the process.

This process means that often stocks in the FP CRUX UK Special Situations Fund will typically have these characteristics:

  • High quality business with low levels of debt;
  • Companies run by strong management teams, often with proven track records with meaningful amounts invested in the companies they run;
  • Businesses which have an economic advantage with the potential for high returns on capital and growth;
  • Businesses with a strong geographic exposure, not just focused on the UK market.

Fund Manager

Richard Penny
Richard has been managing the FP CRUX UK Special Situtions Fund since its inception.

Fund Objective

The Fund aims to achieve long-term capital growth through bottom up stock picking.

Expertise and experience - that's the      Contact Us

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