Investment Show: Why Gresham House’s Ken Wotton sticks to helping a small company that can win big
The UK tycoon FTSE 100 companies often lament the lack of excitement, but on the other side of the UK stock market there are many highly innovative companies.
Small business investors can benefit from opportunities that are overlooked in a much less researched market, headroom for many potential growth, and management teams with enough skin for the game. increase.
However, choosing quality small caps requires a lot of research and effort to build a portfolio that can survive the storm that could severely drop more volatile stock prices.
Some small business funds and trusts address this by diversifying risk into 50-100 shares, but this is not the approach adopted by the strategic equity capital trusts managed by Ken Watton of Gresham House. ..
Instead, it has a tight portfolio of only 17 companies with which the fund management team is directly involved and trying to work together to succeed in business and investment.
This is described as applying a private-equity-style approach to private companies.
In this episode of the investing show, Ken Watton joins Richard Hunter and Simon Lambert to discuss Trust’s approach and why UK SMEs think they could generate strong returns in the coming years. increase.
But he says investors need to look at companies individually and investigate their outlook, rather than applying a broad brush approach.
Ken emphasizes some of the companies he supports and why, and explains why he’s looking for profit now, not tomorrow’s jam promise, despite investing in growing companies.
Over the past year, the trust has benefited from Covid’s recovery, resulting in a profit of 61.4%. This is because it generated more than the average profit of the AIC SME sector, 53.2%. However, in three years, it has generated 42% of revenue, below the sector average of 49%. It has a 1.07% ongoing fee and is traded at a 13.3% discount on net asset value.
Top 10 Strategic Equity Capital Investment Trusts as of the end of September 2021
Trusts have outperformed the FTSE Small Cap since 2009, excluding the Investment Trust Index
Gresham House Manager, a British SME that can win big
Source link Gresham House Manager, a British SME that can win big