About Aberforth

Business Summary

The investment management business conducted by Aberforth Partners LLP (“Aberforth” or “the firm”) was established in 1990 and remains wholly owned by full time working partners. The firm’s objective is to deliver superior long term investment returns for its clients. Portfolios are long-only and are actively managed by a team, which conducts its own fundamental analysis and adheres to the value investing style. Aberforth’s commitment to value investment and its focus on small UK quoted companies have remained consistent since inception, as has its belief that the partnership structure best serves to align the interests of the firm with its clients. Throughout its life, the firm has been comfortable operating within the capacity constraints imposed by its chosen asset class and has avoided a proliferation of product, seeking to deliver a high level of resources and service to the institutional and professional market.

At 30 November 2017, funds under management totalled approximately £2.4 billion.

Value Style & Investment Process

We are value investors who seek to purchase shares in companies that are selling below their intrinsic value. The chosen investment universe yields a disproportionate number of value opportunities as a consequence of greater inherent business volatility, lower liquidity and less abundant flows of information.

Valuation anomalies arise as a consequence of weak macroeconomic conditions temporarily depressing trading, through poor execution undermining an attractive business model or peripheral activities obscuring a strong core business. The forces that drive a divergence from underlying value are often temporary and may be reversed through greater investor interest, management action or corporate activity. Investments are held until the value gap closes; the average holding period is some three years.

Intrinsic value is determined through the internal research efforts of the experienced, well resourced and motivated investment team taking a long term view. Our investment managers combine detailed financial and industrial analysis with a valuation approach that focuses on both stockmarket and corporate worth. Consideration is made of competitive position through, inter alia, assets employed and intellectual property. Furthermore, when required to protect shareholder interests, the team undertakes discreet engagement, leveraging its experience, its long term relationships with investee companies and the often significant stakes held across the Aberforth client base.

Funds

Aberforth manages two investment trusts, one unit trust and a number of segregated funds. Aberforth Smaller Companies Trust plc (investment trust) and Aberforth UK Small Companies Fund (unit trust) have virtually identical diversified portfolios, normally comprising more than 80 investments. Aberforth Split Level Income Trust plc (split-capital investment trust) has a similarly diversified portfolio, normally comprising more than 60 investments, but with a higher average yield than the other funds' portfolios.

The investment team are substantial investors in products managed by the firm, so creating a clear alignment between investors and the investment managers.

Partners of Aberforth

Aberforth Partners LLP is wholly owned by the following partners:
Euan R Macdonald, Keith F Muir, Richard MJ Newbery, Peter R Shaw, W Alan Waite, Christopher N Watt and Alistair J Whyte.

Further details regarding Aberforth are set out in the Legal Disclaimer.