Our Approach

Margetts’ Investment Process is built in layers, creating depth to ensure objectivity, greater understanding and better analysis.

This page explores the depths of our investment process, which centres around a team approach, to combine different skills and experience to increase overall capability.

We believe that a team approach reduces certain risks and provides for more balanced research. Our investment approach has led to award winning fund performance.


The three senior investment managers have worked together for a minimum of ten years with a combined total of over sixty five years experience working in financial services.

Our investment philosophy creates an overarching framework that guides the investment team.

The philosophy is based on independence and focuses on long only, diversified and rational investments. Analysis centres on understanding structure, process, performance and the costs of an investment.


The application of the investment philosophy creates a high level filter that drives our selections. Research will tend to focus on regulated on-shore UK retail collective investment schemes.

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Strategic Asset Allocation

Over the long term Margetts believe that capital markets are efficient. Modern portfolio theory can be combined with empirical evidence and experience to create a strategic model which defines the risk and return profile of a portfolio.

This first step is the most critical stage of creating a portfolio that will be suitable for an investor to meet their objectives.

We have set out a strategic allocation for each risk category, measured on a scale of one to ten.


To read more about the strategic asset allocation and the expectations for risk and return please download a copy of the “Lessons from History”.

Tactical Asset Allocation

We believe that trends can be identified through a pragmatic and flexible approach. By adapting portfolios through the economic and investment cycles we believe that value can be added for investors over the long run.


This style of management is known as “top down”. Our views will affect our choice of underlying investments to find the right assets, managers and style of funds in relation to the current investment cycle.

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Quantitative Analysis

Like all of our research, quantitative analysis must adapt to the investment cycle. Quantitative research involves screening the available universe of collective investment schemes to short list funds that may be of interest. In addition, quantitative research helps to identify under performing assets.

The screens used will change throughout the investment cycle. During periods of momentum, short term analysis can be more relevant than longer term performance. However, during periods of inflexion it may be more important to look at historic periods of change to understand how the manager’s style performed or how it changed.

Our analysts will not be content with peer group performance alone. We wish to understand the drivers of performance.


Analysts will seek to ascertain whether asset or sector allocations have driven performance or if stock picking appears to have been the driving force.

We wish to understand how consistent performance has been and whether conviction decisions led to periods of brilliance or if the manager has consistently added value through more numerous but lower conviction decisions.

Qualitative Analysis

To truly understand a collective investment scheme analysts must be prepared to explore much more than performance.

Qualitative research is aimed at understanding the structure and processes employed by a manager.


Analysts seek to understand how the structure and processes lead to performance and where the style is more likely to add value.

In addition, qualitative research focuses on potential risks. We want to ensure that robust procedures are in place to minimise the risks posed to investors. This process starts with a request for information which will provide the analyst with an overview of basic information including manager experience, processes and controls.

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Research & Review

Research Notes

Research notes combine the quantitative and qualitative analysis to form a view about the collective investment scheme.

Research notes provide a rating on a scale of 1 (Strong Sell) through 3 (Hold) to 5 (Strong Buy).

The analyst will provide a reason for the rating, a risk rating, overview of key features and notes on performance and management. The analyst will also point out any perceived risks with the process or management of the fund.

Other general information is also provided such as costs, asset and geographical allocation, turnover etc. All research is signed off by a senior manager of the team following a review.



The Fund Management team meet on a weekly basis to discuss macro economic data, the investment cycle and the investment strategy.

The underlying holdings held in that model are subject to a review using technical analysis reports, which help the team identify inconsistencies in performance which will lead to a detailed review when appropriate. Margetts track the performance of funds where research has been conducted to flag to the investment team when a fund’s subsequent performance is outside of our expectations. The research & subsequent performance will be reviewed and new research may be conducted if appropriate.



Margetts has in place controls to ensure that research and our investment management meets the high standards required by the firm.

The investment process has been designed to provide consistent application of our approach.

The firm operates risk controls according to the Risk Management Policy, which sets out our framework for ensuring that we can identify, monitor and manage risks.

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