TM Oberon UK
Core Fund
The TM Oberon UK Core Fund seeks to safeguard and grow investors' capital over the long term by targeting businesses with strong fundamentals, sustainable operations, and capable, reliable management teams. Our aim is to offer a stable and consistent investment option for those looking to engage with the UK stock market.
Investment Strategy
The Fund’s investment selection follows a stringent three-step evaluation process to ensure quality and reliability:
1. Clarity: Do we have a thorough understanding of the business and its operations?
2. Resilience: Does the business demonstrate sustainable profitability through economic cycles?
3. Trustworthiness: Can we rely on the management to be competent and honest?
Only businesses meeting all three criteria proceed to an in-depth valuation, where we assess attributes like cash generation and core business strengths. This process typically results in a selection of companies with low capital needs, well-established brands, solid balance sheets, competitive advantages, and lasting market presence. The Fund prioritises a long-term, low-turnover approach, focusing on both dividend yield and capital appreciation, with minimal concern for short-term market shifts.
Meet the Fund Manager
Richard Penny
Richard joined Oberon as a fund manager in December 2024, after managing the TM CRUX UK Special Situations Fund since 2018 with CRUX Asset Management. With over 15 years of experience at LGIM, where he oversaw the L&G UK Alpha Trust and the L&G UK Special Situations Trust, he also held previous roles at M&G Investment Management and Scottish Amicable Investment Management. Richard was awarded an AAA rating from Citywire in June 2021 and holds a master’s degree in Engineering and Economics from Oxford University.
Fund Goals and Investment Policy
The Fund aims to achieve long-term growth, defined as five years or more, through a mix of capital gains and income.
It is important to note that returns are not guaranteed, and there is a risk that investors may receive back less than their original investment.
To fulfil its objective, the Fund allocates at least 75% of its assets to companies listed on UK exchanges, particularly those incorporated or domiciled in the UK. The Fund’s investments primarily include ordinary shares and other securities such as preference shares and convertible debt. The Fund may also hold cash, money market instruments, deposits, warrants, units in other funds, and derivatives.
Generally, the Fund consists of 20 to 40 holdings and may also invest in companies based outside the UK if deemed beneficial. This relatively focused approach means the Fund may exhibit higher levels of volatility.
Derivatives may be utilized to support the Fund’s objectives or for hedging, though active derivative trading is not currently planned.