Rodrigs took over as manager of the £380.5m Investec UK Smaller Companies portfolio back in June 2006 and since then it has shot to the top of performance tables while taking on only slightly more risk than the average fund in the sector.
The fund has the highest Sharpe ratio of any fund in its sector over five years, beating industry favourites Standard Life UK Smaller Companies and Marlborough Special Situations.
Risk-adjusted return of funds vs sector over 5-yrs
| Name | Sharpe ratio | Returns (%) | Volatility (%) |
| Investec - UK Smaller Companies | 0.1 | 28.36 | 21.96 |
| Liontrust - UK Smaller Companies | 0.06 | 26.41 | 16.7 |
| Stan Life Inv - UK Smaller Companies | 0.05 | 23.17 | 20.22 |
| Marlborough - Special Situations | 0.04 | 22.21 | 18.74 |
| IMA UK Smaller Companies | -0.01 | -3.39 | 20.03 |
Source: FE Analytics
The ratio measures a fund's return relative to a notional risk-free investment – in this case, cash. The difference in returns is then divided by the fund's volatility.
According to FE Analytics, the fund has returned 28.36 per cent over five years – a figure that has only been beaten by Hargreave’s Marlborough UK Micro Cap Growth portfolio, which invests exclusively in companies with a market capitalisation lower than £100m.
By contrast, Nimmo’s Standard Life UK Smaller Companies fund, which has recently closed to new money, has returned 23.17 per cent, while Hargreave’s Marlborough Special Situations portfolio has returned 22.21 per cent.
Performance of funds vs sector over 3-yrs
Source: FE Analytics
Rodrigs also has a superior record in the short-term; according to FE data, Investec UK Smaller Companies is a top-decile performer over three years, with returns of 81.92 per cent.
Over 10 years, Hargreave’s portfolio pips Investec UK Smaller Companies to the post in the risk/return standings, boasting a Sharpe ratio of 0.83 compared with the Investec fund’s 0.76.
Before Rodrigs, the fund was headed up by Daniel Hanbury, who is also an FE Alpha Manager. He now runs R&M UK Equity Unconstrained.
Rob Morgan, investment analyst at Hargreaves Lansdown, rates Rodrigs' style very highly.
"For a young guy he’s done very well," he said. "Our research shows that he has added value from his stock picking, which is what you want from any small cap manager. I suppose his record is all the more impressive given the calibre of managers you have in the sector."
"It’s not yet on the Wealth 150 list but it’s one we’re looking at closely."
Morgan also points to the fund’s size as a big advantage.
"It’s a little smaller than Hargreave’s fund and certainly smaller than Nimmo’s, which has had to soft-close recently," he explained.
"At around £400m he can move around pretty aggressively, while some of the others have their hands tied."
Standard Life UK Smaller Companies currently has £1bn assets under management (AUM), while Marlborough Special Situations has £477m. Rodrig’s portfolio is more nimble than both, but this may not be the case for long; according to FE inflows data, the fund has grown by £100m in the last 12 months alone.
With a minimum investment of £1,000 and a minimum top-up of £500, the fund is ideal for retail investors. It has a total expense ratio (TER) of 1.6 per cent, which is below average for a UK Smaller Companies portfolio.