191. Investing in fast-food and defence via UK smaller companies

Simon Moon, manager of Unicorn UK Smaller Companies fund, talks to us about recent performance of the sector vs its larger peers in the FTSE 100. He also talks about the opportunities today and reveals the companies he has recently invested in. Simon goes into detail about meetings with company management teams and discusses his holdings in fast food restaurants and firms benefiting from increased expenditure on defence.
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Unicorn UK Smaller Companies is a very high conviction fund with around 40 holdings. Its manager focuses on company fundamentals and aims to make long-term investments, while avoiding low quality, cash-burning businesses. It’s a small and flexible fund, with a solid investment process and a highly competent team. All companies must be profitable at the point of investment and a large proportion of research is performed in-house. This allows Unicorn to identify companies often missed by brokers.

What’s covered in this episode:

  • How UK smaller companies have performed in recent months
  • The holdings that have been added to the fund, including Porvair and Cohort
  • How management teams are now more accessible to investors
  • Why seeing companies on the ground is important
  • The opportunities in smaller companies today
  • Why the manager likes Tortilla Mexican Grill and The Fulham Shore
  • How Premier Foods is expanding in the US and Canada
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