IT Special: Dispelling the small cap myths

clock

Compelling opportunities in smaller companies are being overlooked by investors. James Henderson, manager of the Henderson Opportunities trust, addresses some of the myths surrounding the space.

The discount at which small-cap and AIM stocks are trading has deepened and there is great value to be found at the moment. Despite this, investors are still reluctant to look at the area for growth. The UK’s lacklustre economic environment has made exposure to domestic companies less appealing, while negative macro news has caused investors to shelter in the larger ones. However, the UK’s economic outlook is not as vital to the success of smaller companies as some may believe and it is worth noting that the scope of businesses in this area offers attractive diversification opportunities...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment Trusts

Baillie Gifford: Investment trusts that mirror OEICs 'vulnerable to attack'

Baillie Gifford: Investment trusts that mirror OEICs 'vulnerable to attack'

Warning comes following Saba saga

Linus Uhlig
clock 20 May 2025 • 2 min read
AIC expands adviser education resource with Knowledge Base launch

AIC expands adviser education resource with Knowledge Base launch

Free resource contains six guides for financial advisers

Jenna Brown
clock 18 March 2025 • 1 min read
Saba withdraws general meeting requisition at Middlefield Canadian Income

Saba withdraws general meeting requisition at Middlefield Canadian Income

Suspended for 60 days

Linus Uhlig
clock 25 February 2025 • 1 min read