The full investments of the firm’s Multi-Manager Balanced Managed Trust and Multi-Manager Special Situations Trust will be transferred to Marlborough’s UK Micro-Cap Growth and Nano-Cap Growth funds, of which the multi-manager portfolios have been long-term investors in.
Managers Santa Barbara and Feld, who have been running money at Marlborough since 2003 and 2013 respectively, will retain a broadly similar investment strategy when running the new bespoke segregated mandates.
Richard Goodall, CEO of Marlborough, said: “This is an exciting new development in the evolution of our relationship with Hargreaves Lansdown and demonstrates their confidence in the skill and expertise of Eustace, Guy and the wider UK smaller companies team.
“Marlborough’s growth has always been based on a partnership approach with the companies we work with. We listen to their needs and work hard to develop solutions that will help them to achieve their strategic goals.”
Lee Gardhouse, CIO of Hargreaves Lansdown Fund Managers, said the firm is “delighted to be working with Marlborough on our continued adoption of segregated mandates”.
“The team at Marlborough have talented fund managers, who we rate highly, and their appointment sees a new chapter in our relationship, which already spans two decades,” he added.
Marlborough UK Micro-Cap Growth, which holds at least 80% of its portfolio in companies with a market cap of £250m or less upon initial investment, has been headed up by Feld and Santa Barbara since 2012 and the start of this year respectively. It has comfortably outperformed its average peer in the IA UK Smaller Companies sector over three, five and ten years, according to data from FE fundinfo, having gained 377.4% over the past decade.
Launched in 2013, the Marlborough Nano-Cap Growth fund – which holds at least 80% of its portfolio in stocks that are £100m in size or less at the time of the initial investment – has also significantly outperformed its average peer over three and five years, as well as over the past year.
Since inception, it has returned 216.7% compared to the average fund in the IA UK Smaller Companies sector’s gain of 136.6%. Feld has managed the portfolio since launch, and was joined by Santa Barbara – who has co-managed Marlborough Special Situations since 2014 – at the start of this year.