361. Has the UK small-cap winter finally thawed?

UK smaller companies have been unloved for years, but the tide might be turning. In this interview with Scott McKenzie, co-manager of the WS Amati UK Listed Smaller Companies fund, we discuss why the asset class has struggled, the early signs of improvement, and what could drive a long-term recovery. We explore volatility, valuations, the impact of government policies like the Mansion House Accord, and the outlook for AIM-listed stocks. With market sentiment shifting and opportunities re-emerging, now might be the time to revisit UK small-caps.

What’s covered in this episode: 

• Why should investors be optimistic today?
• How Trump’s tariffs impacted the fund
• Are more fund flows coming in? 
• The Mansion House Accord
• Is the end of US exceptionalism good for UK companies? 
• The challenges and future of the AIM market
• Cheap valuations equal more opportunity
• The impact of non-UK investors in this space
• Outlook for the next 12 months

More about the fund: An unconstrained portfolio, seeking structural UK growth businesses that can grow faster than the economy, WS Amati UK Listed Smaller Companies has a very solid investment framework which has consistently worked for 20 years. The fund is managed by a team of exceptionally experienced managers and few smaller companies funds can boast this level of resource.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.