Here are three that you may wish to consider for your portfolio:
Melchior European Absolute Return
"We’re a big fan of the manager [Leonard Charlton] over here," said Rob Morgan (pictured), fund analyst at Hargreaves Lansdown. "This is a guy who proves that all the talent isn’t necessarily at the biggest fund houses."
"In meeting the manager, we were convinced that he has what it takes to make money through thick and thin, which is a very difficult thing to do. So far, he’s done exactly that, and deserves a lot of credit.""In general we’re a big fan of boutiques, because they are smaller and have greater flexibility, and tend to be headed up by some of the up-and-coming stars in the industry."
According to FE data, the long/short portfolio has returned 12.25 per cent, with less volatility than the average IMA Absolute Return fund.
Liontrust Special Situations
"I suppose this one is borderline boutique because it’s so popular and has got rather big," continued Morgan. "Nevertheless, Liontrust Special Situations is one we like very much."
"The managers [Julian Fosh and Anthony Cross] are entirely independent, and this one is the least constrained of all the funds that they manage. Both have their own stake in the business and so the investor can be confident that they run the fund with the best intentions."
Performance of fund vs sector and benchmark since launch
Source: FE Analytics
According to FE data, the £367m portfolio has returned 115.95 per cent since its launch in November 2005 – significantly more than both its sector and benchmark, with less volatility.
The FE five crown-rated fund has a minimum investment of £1,000 and a total expense ratio (TER) of 1.89 per cent.
CF Walker Crips Equity Income
"This top-down fund is much smaller than a lot of its rivals, which means that it’s more nimble and can concentrate on stocks outside the FTSE 100," explained Morgan. "If you look at its top-10 it’s got the likes of Unilever in there, but also much smaller stocks like Anglo Pacific, which is nowhere near the FTSE 100."
"This allows it to take advantage of stocks with faster growth and income growth. With so many funds in the sector investing in the same stocks, it’s good to have one with a little less overlap."
The fund is headed up by FE Alpha Managers Jan Luthman and Stephen Bailey and is available at a minimum investment of £1,000.
Walker Crips has recently been bought out by Liontrust and the fund is set to be renamed Liontrust Macro Equity Income.
However, Morgan doesn’t think the change will have any effect on how the fund is managed.
"It’s my understanding that the portfolio will carry on unchanged," he said. "There will be slight adjustments when it comes to dealing and costs, but I think the day-to-day running of the fund will be the same."