312. Waiting for the penny to drop on UK smaller companies

FundCalibre - Investing on the go

David Stevenson, co-manager of the WS Amati UK Listed Smaller Companies fund, discusses the current market dynamics and the outlook for UK smaller companies, despite a challenging two-year period marked by receding investor appetite and outflows from small-cap funds. David argues now is a unique entry point for UK smaller company investing, buoyed by recent improvements in relative performance and the potential benefits of lower interest rates. We also cover the surge in M&A activity and share buybacks, underscoring the attractiveness of UK companies for both domestic and international investors.

What’s covered in this episode:

• How have UK companies fared of late?
• How do interest rates impact smaller companies?
• Why now is an attractive time for investors
• How prevalent has M&A Activity been?
• The rise of share buybacks in the UK
• Getting the domestic investor back into UK equities
• Two exciting funds today: Alpha Group and Trainline
• Are their concerns over liquidity in the fund?
• Should investors be optimistic on the UK?

More about the fund:

An unconstrained portfolio, seeking structural UK growth businesses that can grow faster than the economy, this fund is managed by a highly experienced team of small cap specialists. The portfolio of 65-70 companies focuses on structural growth businesses, which the managers’ believe can add value in the under-researched small and mid-cap part of the market.

Learn more on fundcalibre.com
Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.