275. Why the UK market is at an attractive entry point

The VT Downing Unique Opportunities fund recently celebrated its third anniversary. With its life so far having been dominated by tumultuous global events such as the pandemic, the invasion of Ukraine, and rising inflation, manager Rosemary Banyard joins us to discuss how she navigated these challenges and managed to outperform in spite of them.The fund has a focus on small and mid-cap companies, which have faced headwinds in recent years. Rosemary explains this in more detail and shares her experience with M&A activities. We conclude the interview by discussing current market sentiment towards the UK and consider the concerns and the factors that may make now an attractive entry point for investors.

Launched in 2020, the VT Downing Unique Opportunities fund is managed by experienced professional Rosemary Banyard who has over 30 years of industry expertise. Rosemary seeks companies with sustained competitive advantages, low debt, and strong management. The portfolio is highly concentrated, comprising of just 25-40 names.

What’s covered in this episode: 

  • Overcoming the challenges of launching a fund during Covid
  • The fund’s focus on small and mid-cap companies
  • The fund’s performance compared with its peers
  • Why the fund doesn’t invest in banks or oil and gas companies
  • The importance of long term compounding
  • Top performer in the fund: Games Workshop
  • How prevalent M&A activity has been
  • Two companies in the fund that have had bids
  • When it’s hard to ignore the macro “noise”
  • Views on the UK market’s undervaluation
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