What’s next for UK small cap stocks?
Laura Foll, Co-Portfolio Manager of Henderson Opportunities Trust, talks about how UK small caps have performed year-to-date, which segments of the portfolio have performed well, and where she is finding attractive opportunities. Laura also outlines how the portfolio may benefit from the energy transition.
Key Takeaways
- UK small cap stocks, generally more cyclical and tied more closely to the economy, have underperformed their large-cap counterparts as the risk of a UK recession intensifies.
- The stabiliser portion of the portfolio consisting of larger companies (found on the FTSE 100 Index) and natural resource companies has performed well calendar year- to-date, benefitting from positive investor sentiment and higher commodity prices.
- The portfolio is positioned to benefit from both traditional natural resource companies (Serica Energy) and next generation energy providers (Ilika) that might play a part in the transition towards clean energy.
Related insights
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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