Professional only
Why should investors consider smaller companies?
Scott McKenzie, co-manager of the WS Amati UK Listed Smaller Companies fund, tells us about the exciting opportunities in smaller companies and why investors should look to UK smaller companies for growth.
Watch the full interview with Scott here https://youtu.be/QVB_A-SJ5bI
View the transcript
Scott McKenzie: There are a lot more exciting growth businesses in the small cap world than there are in the FTSE 100. If one looks at the large cap, you know, it’s widely seen as a relatively staid and mature index. If you’re investing in the FTSE 100 today, you’ve got very few options for exciting growth or very few technology companies, lots of banks, lots of oil companies, et cetera.
In the small cap world, we have the potential for far more significant growth in the long run than you would have in the large cap index. So, I think we shouldn’t lose sight of the fact that you can find exciting growth companies in the smaller cap end of the market. And I think the second crucial point is you can now buy these companies on very, very low valuations. That wasn’t the case perhaps three years ago, it’s certainly the case today. We believe that the valuations are now so low across all small companies that even if we are slightly premature in our timing, over the long run, we think investing in small cap today could be a very, very profitable transaction for most investors.
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