Most fund groups do their best to market themselves to the public and seek the highest possible profile. So it may come as something of a shock to discover that there are some investment trusts out there that not only do not promote themselves but seek actively to avoid the limelight.

John Newlands, of Newlands Fund Research, which studies the investment trust market, says: “There is something akin to a secret underbelly beneath the mainstream UK investment trust sector, and some of these trusts, such as London and St Lawrence, have been hiding their lights under bushels for decades. This is a great pity because a number of these ‘secret squirrels’ of the investment world boast very good track records.”

London and St Lawrence can trace its roots back to 1910 and has a 95-year-old senior investment manager, Gerald Ashfield. It is very much an old-school type of trust that traditionally has shunned publicity, but there is nothing old-fashioned about the trust’s performance. It holds a wide spread of assets, including gilts, corporate bonds and other investment trusts. The diversification has paid off – it has produced a return of 90 per cent over five years.

Gresham House, managed by Alfred Stirling, is another little-known trust that rarely appears on brokers’ lists because, at £30 million, it is small. Yet its performance has been spectacular over the long term, boosted by its holdings in private equity and property.

It has multiplied investors’ money threefold over the past seven years, putting it 4th of the 17 trusts in its sector. Over ten years it has turned £1,000 of investors’ money into more than £61,000 – the best return of any investment trust by a country mile.

Mr Newlands says: “It is an extraordinary trust, but very few people know about it because it doesn’t exactly shout its merits from the rooftops. It is certainly one to watch, though it has proved to be a highly volatile trust and comes with a big risk warning attached. Even if investors are prepared to take the plunge, they may find that it is quite difficult to acquire shares, because it is so small and consequently there are not many shares around.”

Another group of trusts that remains beneath most investors’ radar are a number run by the people who founded them and who often own a large stake. For example, Independent Investment Trust (IIT) was established in 2000 by a group of Scottish-based former investment managers who each put in a substantial slice of their own money. Their gamble has paid off handsomely, helped by shrewd bets on sectors such as house building, insurance stocks and natural resources.

The annual report chronicling their activities may lack presentational style but the results speak for themselves. Over the past five years IIT has returned 168 per cent, putting it fourth of the 28 trusts in its sector. One factor that certainly encourages good performance is that Max Ward, the fund manager, has a substantial amount of his own money tied up in the trust.

Tom Tuite Dalton, of Arbuthnot Securities, the investment funds specialist, says: “You would never have heard about the trust had it not been for its excellent performance.”

One of the reasons the trust is not better known is that the founders appear to be very happy with the current set-up and do not seem particularly concerned about widening their investor base.

The funds may shun publicity, but they are not short of managers who have held pretty high-profile positions in the past. Max Ward used to work at Baillie Gifford, the well-known Edinburgh investment group. Ruffer, another publicity-shy investment trust, is managed by Jonathan Ruffer, formerly chief investment officer at Rathbone, the investment group.

The Ruffer investment style emphasises wealth preservation rather than attempting to shoot the lights out. The motto is: “Clients like making money but they hate losing it more than they like making it.” This has led, in recent years, to the adoption of a fairly defensive portfolio, which has not produced chart-topping performance. But in the current climate of uncertainty it could prove attractive to the more risk-averse.

However, Mr Tuite Dalton’s favourite example of an unsung hero is Simon Knott, who runs Rights & Issues, a split-capital investment trust that offers both income and capital shares. Mr Knott, a former chess grandmaster, has produced outstanding long-term returns by concentrating on fledgeling stocks that are less well researched.

The capital shares of his trust have multiplied more than sixfold over ten years, while the income shares have risen more than eightfold. Despite this stellar performance the trusts remain tiny, at £64 million and £26 million respectively, partly because Mr Knott does little or no marketing of the funds.

Another tiny trust that is not so much low-profile as no-profile is the £33 million Lindsell Train investment trust. Nick Train, the lead manager, used to be much better known when he ran money for the former GT fund group, but he is now happy to pass unrecognised by most private investors. However, his performance certainly commands attention. The trust has nearly doubled investors’ money in only three years.

Dan Kemp, of Williams de Broë, the portfolio manager, says: “It is a best-ideas fund that mixes UK stocks selected by Mr Train with Japanese stocks picked by Michael Lindsell, his fellow fund manager. What gives the fund an added kick is that it also holds 25 per cent of Lindsell Train, the pair’s fund management company.

“The investment trust world boasts more than its fair share of genuinely talented individuals who devote all their time to managing funds and rather neglect the marketing side of the business. This means that there are rich pickings for private investors who are prepared to do their homework and dig out these secret squirrels.”

For more investment ideas, go to timesonline.co.uk/invest

Track down the publicity-shy trusts

The secret-squirrel trusts do not court publicity, so to find out more about them contact the Association of Investment Companies (AIC), the industry trade body, on 0800 0858520.

AIC should also be able to provide a contact number and address for these trusts.

To buy shares in these investment trusts you will have to use a stockbroker and you will incur broker’s commission and stamp duty.

The Association of Private Client Investment Managers and Stockbrokers, on 020-7247 7080, can provide you with a list of brokers.

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