The fund's investment process focuses on companies that retain a competitive advantage and operate in niche or growth markets. They will also be characterised by strong balance sheets, high return on invested capital and high free cash flows. These companies will generally be out of favour and trading at low valuations; the manager also emphasises dividend cover, low debt levels and the ability of businesses to grow the existing dividend. The manager eschews a barbell portfolio structure - each stock is expected to make a material contribution to the portfolio yield. Unicorn will generally not hold more than 5% of an underlying company's equity. The investment universe consists of AiM, FTSE Small Cap and FTSE Mid 250 companies. Companies will generally be sold once their market cap exceeds £1bn.