Deutsche Numis investment companies conference: Why Smaller Companies? Why Now?
The latest conference organised by our investment companies team, ‘Why Smaller Companies? Why Now?’ revealed the exciting investment opportunities for the asset class. It has been a challenging period for small caps in recent years with higher interest rates and consistent outflows from UK open ended funds. However, the outlook looks much brighter, owing to attractive valuations, positive earnings growth prospects and the potential for a market rotation away from US mega cap tech stocks as interest rates fall.
Given the more stable UK political environment and taking into account that smaller companies have already materially underperformed in recent years, it appears as though the asset class is staging a recovery. We are seeing ongoing low valuations, while inflation and interest rates appear to have peaked, with attractions highlighted by companies delivering earnings growth and several being M&A targets.
For this event, we gathered five investment companies managers: Indriatti Van Hien from Henderson Smaller Companies; Stuart Widdowson from Odyssean; Dan Whitestone from BlackRock Throgmorton; Douglas Brodie from Edinburgh Worldwide; and Simon Barnard from Smithson. Each presentation was followed by a lively Q&A where our presenters were able to give a deeper dive into key elements of their strategies and outlook.
Our speakers explained that smaller companies have the potential to provide useful diversification to investors’ portfolios, following a period when returns have been dominated by a few mega-cap US tech stocks. There can potentially be large rewards for success, with faster and largely organic growth in the asset class.
Find out more about our investment companies offering here: funds.numis.com
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The latest conference organised by our investment companies team, ‘Why Smaller Companies? Why Now?’ revealed the exciting investment opportunities for the asset class. It has been a challenging period for small caps in recent years with higher interest rates and consistent outflows from UK open ended funds. However, the outlook looks much brighter, owing to attractive valuations, positive earnings growth prospects and the potential for a market rotation away from US mega cap tech stocks as interest rates fall.
Given the more stable UK political environment and taking into account that smaller companies have already materially underperformed in recent years, it appears as though the asset class is staging a recovery. We are seeing ongoing low valuations, while inflation and interest rates appear to have peaked, with attractions highlighted by companies delivering earnings growth and several being M&A targets.
For this event, we gathered five investment companies managers: Indriatti Van Hien from Henderson Smaller Companies; Stuart Widdowson from Odyssean; Dan Whitestone from BlackRock Throgmorton; Douglas Brodie from Edinburgh Worldwide; and Simon Barnard from Smithson. Each presentation was followed by a lively Q&A where our presenters were able to give a deeper dive into key elements of their strategies and outlook.
Our speakers explained that smaller companies have the potential to provide useful diversification to investors’ portfolios, following a period when returns have been dominated by a few mega-cap US tech stocks. There can potentially be large rewards for success, with faster and largely organic growth in the asset class.
Find out more about our investment companies offering here: funds.numis.com