The Fund aims to achieve positive returns on a rolling 12 months basis, with lower risk and low volatility expected, primarily through the use of equities and CFDs.

The fund

  • Invests primarily in the United Kingdom.

  • Is a UK-focused long/short Fund

  • References SONIA+4% per annum, irrespective of market conditions, although this is not guaranteed.


Meet the Sanlam UK Equities Team

Chris Rodgers
Chris Rodgers
Head of UK Equities
View profile
Andrew Evans, CFA
Andrew Evans, CFA
Fund Manager
View profile
Mark Boucher
Mark Boucher
Fund Manager
View profile
Mark Swain
Mark Swain
Fund Manager
View profile

Why invest in the fund?

  • Gain exposure to interesting stocks & themes within the UK without taking too much market risk
  • Pragmatic investment approach with the flexibility to scale net and gross exposure quickly to suit market conditions
  • Provides portfolio diversification with low correlation, low volatility focussing on capital protection 
  • Co-managers have over 50 years’ combined experience of managing long/short strategies
  • Demonstrable track record of attractive risk adjusted returns

Past performance is not an indicator of future performance
Source: Bloomberg as at 31/08/2021.

See below for full and discrete performance. 


The Sanlam Enterprise Fund aims to produce positive returns on a rolling 12 month basis regardless of market conditions and with lower volatility than ‘risk assets’ such as equities. We believe the fund should hold a place in all balanced portfolios as it aims to enhance risk/return characteristics whilst focussing on capital protection.

Having been UK long/short equity managers for over 20 years our approach has been stress tested through several market cycles including the bursting of the dot-com bubble, Global Financial Crisis and more recently the COVID pandemic.

Our knowledge and expertise of UK, companies, management teams, analyst community and investor base lies at the heart of our ability to generate alpha. Analysing these constituents to best identify those companies that are most likely to produce positive or negative earnings surprises and drive a re-rating of share prices is key to our investment process.

Monetising idiosyncratic risk (stock-specific risk) whilst hedging out market risk has been fundamental to our success especially on the short side which we regard as a key differentiator.

We are seasoned long/short investors and have been managing UK equity together since 2001

Mark Swain, Fund Manager

Fund Commentary

October 2021

Market/macro backdrop
October saw UK equity markets deliver gains with the MSCI UK index producing a sterling total return of 2.3% (Source: MSCI and Bloomberg).

The Fund produced a performance of 1.1% in October, taking the Fund’s 2021 year-to-date performance to 5.8% (source: Bloomberg).

The main feature of October was that our short positions have started to provide a meaningful impact to the Fund again. Over the last few months we’ve been talking about the equity market being more finely balanced, and we’re starting to see the evidence of that as over-valued stocks are being punished if they disappoint on numbers. This is something that we haven’t seen in the last 12 months.

Past performance is not a guide to future performance. Total return, NAV to NAV basis, net of charges.

Positive and negative contributors
A short in an online retailer of electrical appliances and white goods was the biggest positive stock-level contributor as it warned that year-on-year revenue growth had slowed dramatically in Q2 and cut its full year revenue and EBITDA guidance. Analysts followed suit by slashing forecasts and the shares ended down 33% on the month. A retailer of short-haul beach holidays could only a provide a qualitative trading update given holidays had remained ‘off-sale’ throughout the summer but further news on their on-going dispute with Ryanair once again raised questions about the ‘screen scraper’ business model. We have had a long-running structural short in an educational publishing business and not for the first time, the October update warned that US Higher Education was declining faster than management hoped. Despite the 15% fall in the share price, it still trades on 16x December 2022 earnings which doesn’t look particularly cheap for a company continuing to lose market share.

Another positive in the short book was our position in a D2C e-commerce company which also featured last month as investors began to question the very high valuation being attributed to its technology services division. The Capital Markets Day and specifically the management’s Q&A session did little to allay those concerns and we subsequently closed our short which in hindsight was a little early.
Highlights in the look book included: Watches of Switzerland as it recovered strongly from the ‘growth’ sell-off at the end of September, hydrogen stocks Ceres and ITM Power and long-term structural growth leaders Ashtead and Intermediate Capital.

The main drags came from our long position in S4 Capital on a broker downgrade to hold, a short in a global bank as it is seen a beneficiary of rising rates (although this was offset by our long position in Barclays) and better-than-expected results from a global pharmaceutical maker where we were short. We have since reduced the position.

Significant portfolio changes - buy/sells 
A new long position was added in Next as the shares pulled back after the very impressive results the previous month and we funded this by selling our longs in Travis Perkins and JD Wetherspoon, thus maintaining our overall exposure to the UK consumer. We switched a short position in a brick maker into one of its peers on relative valuation grounds and added a new short in a company specialising in software and IT consultancy services for industry as forecasts that are heavily weighted to the second half of the year look ever more challenging to achieve.
Fund/corporate/team highlights
See above.

As valuations have recovered and covid effects begin to normalise, investors have understandably been far more discerning this results season than in previous quarters. We have generally seen earnings beats met with a more muted reaction – albeit still positive – whilst earnings misses have resulted in some very large share price falls. We wouldn’t be surprised to see this pattern continue into year end, a period which has historically been a very profitable one the Fund on the short side as overly-optimistic forecasts (whether from management or the analyst community) begin to rub against reality.

Explore the details
A UK long/short equity strategy. Run by experienced managers with a 20 year track record of alpha generation.

Related articles

Economic output has recovered, but should we fear a financial reckoning? post image

Economic output has recovered, but should we fear a financial reckoning?

From the rapid nosedive following lockdowns in March 2020 to springing earnings in the first half of ‘21, we’ve moved through this business cycle at top speed. It’s time to take a look at potential market implications and ask ourselves: Does economic payback await?
Why haven't markets rewarded company results? post image

Why haven't markets rewarded company results?

The first quarter was favourable for equities; companies generally beat earnings expectations, in some cases quite strongly. Recovery is well underway, helped by Covid vaccines and an influx of cash to American pockets courtesy of the Biden administration. So why then are outperforming equities reaping so little reward from their stock prices?
A positive outlook but beware of economic euphoria post image

A positive outlook but beware of economic euphoria

The global economic outlook is strengthening, and this view has been reinforced by many companies reporting expectation-beating earnings for the last quarter of 2020. But while good business results go some way towards explaining the confidence in equity markets, are they enough to justify inflated prices?
2021: A new cycle of economic growth and renaissance  post image

2021: A new cycle of economic growth and renaissance

A new year dawns with a heightened need for a fresh start. With 2020 now firmly behind us, we can approach this year with renewed hope and a desire to seek new and exciting opportunities. Caution will need to be exercised, but there is much to feel positive about.
UK and EU agree landmark trade deal post image

UK and EU agree landmark trade deal

After years of negotiations, the UK and the EU have finally agreed a deal. Sanlam CIO Phil Smeaton shares his initial view on the fallout for investors.
How our investment approach fared in 2020 post image

How our investment approach fared in 2020

The word ‘unprecedented’ was deemed the most overused word of 2020, but there are few better ways to describe the past year. As light starts to flicker at the end of the tunnel, we reflect on an extraordinary period and the lessons we’ve learned along the way.
Sanlam investment update - the global hunt for yield post image

Sanlam investment update - the global hunt for yield

Sanlam CIO Phil Smeaton assesses market conditions, the investment outlook and the resulting impact on our clients' portfolios in this month's investment update.
The promise of a vaccine sees value stocks turn a corner post image

The promise of a vaccine sees value stocks turn a corner

When equity markets rallied 8% on the announcement of BioNtech and Pfizer’s Covid-19 vaccine, it showed how eager investors were for good news. But as global lockdowns persist, it’s clear we’re not out of the woods yet, and markets pulled back again accordingly. What we did see, though, was a change in sentiment towards value stocks, which has interesting implications for investors.
Sanlam investment update - the path ahead post image

Sanlam investment update - the path ahead

Sanlam CIO Phil Smeaton assesses market conditions, the investment outlook and the resulting impact on our clients' portfolios in this month's investment update.
Value returns, Cummings goes post image

Value returns, Cummings goes

Welcome to our weekly newsletter, where we summarise the key market developments
Sanlam UK welcomes new global equity income team headed by Mark Whitehead post image

Sanlam UK welcomes new global equity income team headed by Mark Whitehead

Martin Currie global equity income team to join Sanlam at the end of 2020. The move supports our ambition to expand our investment offering for clients.
Pieter Fourie awarded Alpha Manager rating for a second year in a row post image

Pieter Fourie awarded Alpha Manager rating for a second year in a row

The Alpha Manager rating is a quantitative rating that distinguishes the top UK fund managers based on alpha generation and outperformance across their career history.

Fund Risks

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years’ performance is available in the fund factsheets.

Part of the Fund will invest in derivatives such as CFDs, futures and options for investment and efficient portfolio management only. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. CFDs are used to obtain short exposures to certain underlying securities. Selling securities short runs the risk of losing an amount greater than the amount invested. The Fund may invest in companies based in emerging markets, which may involve additional risks due to greater political, economic, regulatory risks, among other factors.

Ready to invest?
Contact us
Please agree to proceed. By doing so you agree that you have read and understood the foregoing disclaimer and confirm that you are a professional investor.

Please navigate to a service or product page and add the document to your brochure to continue.

Name your brochure
Your details
Thank you!

Your brochure is on its way.

Brochure Confirmation - your brochure is on its way.

We hope you find this useful.

The value of investments and any income from them can fall and you may get back less than you invested.