7 April 2014 - River & Mercantile has added eight of its funds to the Chelsea FundStore. Three Global Equity and five UK Equity funds are now available to Chelsea's customers.
River & Mercantile, the boutique investment specialist, which was incorporated in 2006, has added eight of its funds to the Chelsea FundStore. Three Global Equity and five UK Equity funds are now available to Chelsea's customers.
Two of the Global funds (High Income and Opportunities) appeared on the latest Chelsea RedZone but the UK Equity Smaller Companies fund was one that impressed Harry Driscoll, one of Chelsea's senior research analysts, when he visited the boutique in January. He said: “The manager, Dan Hanbury, used to work at Investec and uses an evolution of Investec's 4Factor quant strategy. The quant screen is backed up by looking at macroeconomic indicators every quarter, to give guidance on how they should tilt the portfolio. Philip Rodrigs, who was also at Investec, and ran the very popular Smaller Companies fund, will be joining Dan in September to run the strategy.
“I am usually a bit wary of quant screens as, while they are objective and consistent and will flag up ideas, they are backward looking and tend to do badly at market inflection points. However, the guys at R&M understand the limitations of their model and evolved it over time to try to counter these problems. Company meetings are also used in some cases and R&M does allow their managers to express their own views over the top of the quant analysis. Also, as they are a relatively small team, the quantitative nature of the process lightens the workload.
“It's definitely one to watch when Rodrigs takes the helm.”
List of funds added to the Chelsea FundStore:
R&M Global Equity
R&M Global High Income
R&M Global Opportunities
R&M UK Equity High Alpha
R&M UK Equity Income
R&M UK Equity Long Term Recovery
R&M UK Equity Smaller Companies
R&M UK Equity Unconstrained