Darius McDermott: Darkest before dawn for UK small caps?

UK small caps

clock • 5 min read

Now may not be the time to go heavily into UK small caps, but dipping your toe in the water with a long-term time horizon is by no means a silly notion, writes Darius McDermott

Fool me once, shame on you; fool me twice, shame on me. The old saying comes to mind when I think about UK smaller companies at present, because we, as investors, often panic and forget that these companies have consistently proven their ability to outperform over the longer term. I've been on something of a whistle-stop tour of managers in this asset class in the past few weeks and the impression I get is that although out of favour, many managers believe there is now an opportunity based on historic and relative valuation metrics. Year-to-date UK small-caps are down 17%, accordin...

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

Three Invesco funds fail to deliver value to investors

Three Invesco funds fail to deliver value to investors

Manager's annual assessment found some poor performance

clock 14 May 2025 • 2 min read
Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

Darius McDermott: Old demographics, new innovations — so why isn't healthcare booming?

'The sector should be flying — but it isn't'

Darius McDermott
clock 08 May 2025 • 5 min read
Why China's journey to net zero demands investors' attention

Why China's journey to net zero demands investors' attention

China's journey towards net zero could yet prove more rapid than expected

Gabriel Sacks
clock 07 May 2025 • 4 min read