109. UK smaller companies: reaching beyond the white cliffs of dover

While technology companies only make up about 1% of the FTSE 100, there are plenty to be found in other areas of the UK stock market. Guy Feld, co-manager of the Marlborough UK Micro-Cap Growth fund, and Eustace Santa Barbara, co-manager of Marlborough Special Situations fund, tell us more about the AiM market. Home to 84 technology companies, more than a third of the firms listed are also headquartered or have the majority of their operations outside the UK. Investing in UK smaller companies can be a route to growth stories around the world…
Apple Podcast Spotify Podcast

Marlborough UK Micro-Cap Growth and Marlborough Special Situations funds are run by the highly respected smaller companies team at Hargreave Hale. The Micro-Cap Growth fund invests in the UK smallest companies. Relatively small positions are taken initially, and the managers will then run their winners aggressively, adding to them as their story unfolds. The Special Situations fund has evolved as it has grown over the years and now invests in both small and medium-sized companies.

Read more about Marlborough UK Micro-Cap Growth and Marlborough Special Situations

What’s covered in this podcast:

  • How the team has been able to outperform this year [0:39]
  • How few tech companies are in the FTSE 100 [3:54]
  • What type of tech companies you can find in the AiM index [4:23]
  • Whether UK smaller companies could do better in an economic recovery next year [7:26]
  • How entrepreneurial spirit could see even restauranteurs find new opportunities to grow their businesses post-pandemic [8:20]
  • Why M&A is good for smaller companies investors [9:03]
  • If UK smaller companies can survive Brexit [10:17]
  • The extent to which UK smaller companies are actually international businesses [10:32]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Market and exchange-rate movements may cause the value of investments to go down as well as up. Yields will fluctuate and so income from investments is variable and not guaranteed. You may not get back the amount originally invested. Tax treatment depends of your individual circumstances and may be subject to change in the future. If you are unsure about the suitability of any investment you should seek professional advice. Whilst FundCalibre provides product information, guidance and fund research we cannot know which of these products or funds, if any, are suitable for your particular circumstances and must leave that judgement to you. Before you make any investment decision, make sure you’re comfortable and fully understand the risks. Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

More Episodes