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Marina Bond has been manager of Rathbone's Smaller Companies fund since September 2003, taking sole ownership of the fund in May 2005 after the legendary Carl Stick stepped back to concentrate on his other funds.
She made a solid start in her first full year of management, returning 25% with a fund heavily concentrated in Aim stocks – a market that was sluggish in 2006.
There have been a number of Initial Public Offerings that Bond has recently been investing in. One which has done well is Polar Capital, which floated at the beginning of February at 190p per share and is now worth 260p.
She says: 'It's an asset management company that is extremely well run. It has a technology investment trust listed on the London Stock Exchange but is diversifying, has over US$3bn under management and is growing. I feel that its in the right markets, at the right time, doing the right things.'
Another IPO, which Bond admits may not be a long-term holding, is Haike Chemical, which floated on Valentine's Day and has jumped from 100p to 146½p. 'The company has very strong fundamentals. It's a producer and refiner of petrochemicals. This is a growth market, currently growing at around 30% a year, and at the moment there isn't enough capacity.
'We may not keep it in the fund for the long-term, but it has done well since floating.'
Bond has also been buying into Styles & Wood, a property refitting company specialising in High Street retailers. Although most managers aren't confident about the prospects for retailers, Bond says Styles & Wood can do well in both tough and strong trading periods.
She says: 'If a retailer is doing badly, it may decide that its stores need upgrading and will call in a company like Styles & Wood. It worked with Marks & Spencer when it redesigned its stores a couple of years ago and lists most of the major high street retailers as clients.
'It has done very well since floating in November, rising around 38%, but I think it's got some more to go. It's a strong company doing extremely well in a fragmented area, it has lots of cash and there's strong earnings.'
She describes premium cakes, bread & morning goods manufacturer Finsbury Food Group as a 'lovely business'. The company makes high-quality cakes and speciality breads for supermarkets and other food retailers. Bond says: 'This is an area within supermarket spend that is increasing. People seem to be becoming more discerning about what they buy and are looking for quality.
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'It has also recently made an acquisition, the Lightbody Group, at an attractive price, which will help expand its product range and geographical spread.'
Elsewhere, Bond has been expanding her holdings in 'boring tech companies', such as SSP Holdings, CODA, NCC Group and Aveva Group, and Healthcare companies, including Synergy Healthcare and Caretech Holdings. However, she is shying away from oil and mining exploration companies. 'They are too much of a gamble and there are better opportunities available,' she says.
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