Ken Wotton speaks to FE Trustnet about how smaller companies can offer an attractive investment opportunity in a volatile post-brexit market.
(Please note Livingbridge Equity Funds has been renamed Gresham House Equity Funds following the sale in November, click here for more information.)
Addressing the advantages of investing in the small and micro cap markets, Ken says with Brexit just around the corner and ever-increasing speculation around the possibility of a ‘no deal’ leaving position, investing in smaller companies could provide good opportunities during the second half of the year. Smaller companies can display more attractive valuations compared to larger-cap peers and are potentially well-positioned to mitigate any headwinds as Brexit uncertainties mount.
Due to their size they can often be quite nimble, and it may be easier for them to react at pace to the risks and opportunities going on around them,” he adds.
Ken points out that many of these growing companies also operate in less cyclical areas of the market, which can give management teams more control over their own destiny.
“Small- and micro-cap companies often fall under the radar, but it is our belief that investors patient enough to unearth hidden gems in this space will be rewarded in this late stage of the extended equity bull run,” he says.
To read the full article, please visit FE Trustnet.