Innovative and agile: the long-term growth potential of the UK’s smaller companies

In our latest investment case, Eustace Santa Barbara explains why he believes market volatility has created an exceptional long-term investment opportunity in the UK’s smaller companies.

Eustace – who co-manages our Special Situations, UK Micro-Cap Growth and Nano-Cap Growth funds – says that following this year’s sell off, innovative and agile smaller companies with high-calibre management are now on very attractive valuations.

He highlights in the investment case how UK smaller companies have historically outperformed their larger counterparts over the long term and explains the reasons he believes this will continue. These include:

● The innovative nature of the UK’s smaller companies

● The agility of these businesses

● The niche markets in which many of them operate

● The global reach of many smaller companies

● Substantial management shareholdings in many smaller companies

● The fact that these companies are growing from a smaller base

● The large and under-researched nature of the smaller companies universe

Read the full investment case here

Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.