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.