Independent UK investment manager Church House Investment Management has launched a Deep Value Investments Fund. It will mirror an offshore fund that has a ten-year track record, using a so-called “deep value” investment strategy targeting capital growth.

The fund will be actively managed by Jeroen Bos, investment director at Church House.

Only companies which have been established for a number of years and that have been profitable, with a positive cash flow for sustained periods, will be considered. The portfolio will be no more than 30 holdings at any one time and may be substantially liquid when investment opportunities are few, the firm said in a statement.

“Value investing as an investment philosophy is widespread in North America, however it is far less so in Europe. The strategy has to be applied in a disciplined fashion, with a strong focus on balance sheets, and a particular emphasis on the working capital position of a company. This approach is easy to understand, but more difficult to apply as the opportunities only manifest themselves in more lacklustre markets. The stocks that I plan to invest in will have previously had a disappointing share price performance; however, it is in this environment that we look for potential opportunities,” said Bos in the statement.

Church House was established 1999 to manage portfolios for wealthy individuals, trusts, pension funds and family groups. Its principal external shareholder is the Cayzer Trust Company, based on an aggregation of Cayzer family interests.