The top performing global equity fund Tulloch backs

Heenan and Legg also initiated a position in Tesco after it issued a profit warning in 2012. This position, which accounts for 4.4% of the fund, is indicative of the pair’s investment discipline.

‘Tesco has had its problems and its earnings are certainly not at their peak,’ said Heenan. ‘However, we think it is at an interesting price. This is a company with a £1 billion cashflow every quarter, and that solves a lot
of problems.’

The duo are also not shy to pile into cash if they fear a correction is on the cards, and the fund currently holds 17% in cash following the risk rally over the past few months. The mentality means the fund is not for those looking to shoot the lights out, a message they make explicitly clear.

Legg said: ‘Investors shouldn’t expect this fund to keep up in frothy markets. It is important people understand they are buying this fund for long-term gains, not short-term bursts.’

Gathering momentum

Up until January last year this message had gathered little traction, with assets under management totalling £30 million, partly because Kennox had kept relatively quiet, wanting investment justification from numbers on the board. Roll on 12 months and the fund’s assets have swollen to £130 million, and Boyle says the fund has seen plenty of interest from wealth managers. 

While Edinburgh-based Kennox might not go out actively looking for mass publicity like some of its rivals, if it continues to deliver the goods it will have to get accustomed to the limelight.