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Buffettology Smaller Companies IPO looking to raise £100m as it seeks to apply Buffett's style

Sanford DeLand has announced its intent for a Buffettology Smaller Companies IPO that is seeking to raise a minimum of £100m.

Run by Keith Ashworth-Lord of Sanford DeLand, the investment trust will look to invest in a portfolio of smaller companies with market capitalisations ranging in the region from £20m-£500m.

Its benchmark will be the Numis Smaller Companies plus AIM (Ex-Investment Trust) and will have an investment horizon of five to ten years.

And yes, its name has something to do with Warren Buffett. The investment trust will be looking to utilise 'business perspective investing' - essentially this means investing into a business for less than its actually worth and letting the gains compound by holding it for a long time.

Commenting on the IPO was Keith Ashworth-Lord who highlighted the investment style and liquidity an investment trust will provide:

"We believe that the UK small cap market offers excellent investment opportunities to experienced managers who know what to look for and have the freedom to take a long-term view. Our Business Perspective Investing approach is ripe for application to smaller companies and presents an opportunity to deliver superior returns for our shareholders, over the long-term.

"The structure of a closed-ended investment trust, rather than an open-ended fund, means that many of the liquidity concerns over investment in smaller quoted companies can be addressed. The investment trust structure (and permanency of capital) should ensure that we can take a genuinely long-term investment perspective."

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