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Finding value in UK small caps
James Henderson, Portfolio Manager of Henderson Opportunities Trust, talks about the Trust's performance over the first half of the year, areas where he is finding opportunities, and how smaller businesses are innovating to deal with changing consumer behaviour. James also touches on the longer-term investment themes playing out in the portfolio.
9 Aug 2022
Key takeaways:
- It’s been a challenging period for the Trust as smaller companies have struggled in the face of higher inflation, economic uncertainty, and rising input costs. However, the larger mature companies within the portfolio “stabilisers” have performed well and helped offset some of this weakness.
- During difficult market environments – such as stagflation – companies with strong pricing power, solid balance sheets, lower debt levels, and experienced management teams tend to be more resilient.
- Over the long-term, strong growth tends to come from small and medium-sized companies. Though their performance can be volatile, they also tend to bounce back stronger following difficult periods or large equity drawdowns.
Janus Henderson Podcast
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Related insights
9 Aug 2022
Key takeaways:
- It’s been a challenging period for the Trust as smaller companies have struggled in the face of higher inflation, economic uncertainty, and rising input costs. However, the larger mature companies within the portfolio “stabilisers” have performed well and helped offset some of this weakness.
- During difficult market environments – such as stagflation – companies with strong pricing power, solid balance sheets, lower debt levels, and experienced management teams tend to be more resilient.
- Over the long-term, strong growth tends to come from small and medium-sized companies. Though their performance can be volatile, they also tend to bounce back stronger following difficult periods or large equity drawdowns.