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…

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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.

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]

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