The Tosca Mid Cap fund rose 6.7 per cent in July and is up 68 per cent year-to-date, according to Toscafund Asset Management.

The USD100m fund, which specialises in the UK mid cap space, was launched by Martin Hughes and Paul Compton in February 2008.

The fund's objectives are to take advantage of distressed selling and assist equity recapitalisations.

The fund uses a central research team, Tosca Metriks, for proprietary data and analysis of the UK marketplace.

It has achieved positive results in six of the last seven months.

Chris Jones, Toscafund's risk manager, says: "Daily reporting of detailed risk results, combined with regular discussions with the portfolio managers, has led to good management of downside risk."

Hughes adds: 'The seeds planted in 2008, new positions initiated in 2009 and further targeted investments point to the exceptional equity investment climate in this space continuing.'

Toscafund also manages Tosca Opportunity (launched 2005), Tosca Metriks (launched 2007), Tosca Mid Cap (launched 2008), Tosca Asia (launched 2007) run by Toscafund Global, Dubai and Tosca MOD (launched August 2009).