86. How the spirit of the Industrial Revolution is alive and well in UK smaller companies

Simon Moon, manager of the Unicorn UK Smaller Companies fund, says the recent sell-off has once again demonstrated the ability of burgeoning UK businesses to be both nimble and resilient amid uncertainty. He also explains why the boom in computer gaming is here to stay post-lockdown and why the legacy of the Industrial Revolution is alive and well among high quality niche engineers in the UK small-cap arena.

Download transcript(PDF)

The Unicorn UK Smaller Companies fund is managed by Simon Moon and looks to uncover some truly hidden gems at the lower end of the market cap spectrum. Unicorn is a specialist in the UK small-cap space with the team looking for stocks with lasting competitive advantages, experienced management teams and strong balance sheets. All companies must be profitable at the point of investment, while the fund actively avoids companies in the oil and gas, mining and biotech sectors.

Read more about Unicorn UK Smaller Companies

What’s covered in this podcast:

Why UK companies have not bounced back to the same degree as their peers following the sell-off [0:18]
How the uncertainty following the sell-off has transformed into resiliency in the UK smaller companies’ arena and the importance of Government support to these businesses [2:32]
Why a localised second lockdown would be far less detrimental to the UK economy [6:45]
How the legacy of the Industrial Revolution is alive and well through engineering businesses in the UK smaller companies’ space? [7:34]
Why the boom in computer gaming will continue post-lockdown with a new, engageable audience [10:50]
The spectre of a hard Brexit and why many of the niche industry leaders are insulated from this outcome [16:45]
Small is beautiful – how the nimble and proactive actions we’ve seen from UK smaller companies in the recent sell-off supports their strong long-term outperformance [17:10]

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.