Switch location / audience type

This content is not available based on your location and audience type.

You currently have access to view the Uk website for Independent Financial Advisers (IFAs).

If this does not apply to you, go back to our homepage.

Select a location
Select an audience type

Let us know who you are so we can optimise your experience.

Please select your audience type

This includes trust companies, fiduciaries, insurance companies, Wealth Advisers and other professionals.

Important information

You are about to enter our website for professionals. If you would like to return to our main website, go back to our homepage.

Please read the terms and conditions before proceeding.

Please note these are subject to change at any time.

The information in this area of the website is aimed at financial advisers, corporate service providers, wealth advisers, and legal and accountancy professionals. It is not intended for direct use by private investors or onward distribution to retail clients or the general public. Please visit our homepage for information and resources for private clients.

The website is for information purposes only and is not to be construed as a solicitation or an offer to purchase or sell investments or related financial instruments.

I confirm that I am one of the categories of professional mentioned above, and that where applicable I am authorised and regulated by the Financial Conduct Authority or equivalent regulated body given my jurisdiction, location, and profession. I have read and understood the legal information and risk warnings.

By clicking the 'Accept' button, you agree to abide by the terms and conditions listed below.

Skip to main content
UK

Our small-cap investment strategy

Small cap investments can form part of any investor’s diversified portfolio, but picking small cap stocks can be risky, so the devil is in the detail. Our investment experts are constantly monitoring smaller companies that are becoming pioneers in their area, are at the forefront of innovation, are playing a vital role in the growth of an emerging sector, or are simply doing something better or faster than before.

How we choose small-cap companies to invest in 

When choosing smaller companies to invest in, our specialist small-cap investment committee carries out extensive research and analysis. They then create a shortlist of companies that meet our criteria. We look for businesses with:

  • high-quality management
  • history of consistent earnings
  • dividend growth
  • balance sheet strength
  • proven cash generation
  • high barriers to entry
  • reasonable valuation
  • strong earnings growth
  • owner managers.

How we seek out small-cap opportunities 

Building on these criteria, we look for opportunities in businesses within these categories:

  • Niche businesses: companies that satisfy a specific market need
  • Roll-out stories: companies that are expanding, either in phases or store-by-store
  • Market leaders: companies that enjoy the largest market share in their peer group
  • IPOs: companies raising initial capital to help them transform from a private company to a public listed entity
  • Industry consolidators: companies that are buying up their competitors and improving them
  • Special situations: companies where our dynamic and nimble approach can exploit short-term market opportunities or identify early stage management change and corporate turnaround

How can our small-cap investment experts help you?

Small-cap investments tend to be high-risk but can also be profitable. If you’re interested in including small-caps in your portfolio, request a complimentary consultation with a specialist investment manager today. They will listen to your request and carefully assess your needs and preferences.

We always tailor our service to suit individual needs, and your wealth manager will be happy to include a small-cap investments if they are right for you.

Interested in investing in small-caps?

Book a complimentary consultation with a small-caps investment specialist today.

Request a consultation

Investments in smaller companies, including AIM stocks, carry a higher degree of risk than investing in more liquid shares of larger companies, so they may be difficult to sell at the time you choose. Investments in smaller companies are more volatile and, while they can offer great potential, growth is not guaranteed. 

Investment involves risk and you may not get back what you invest. It’s not suitable for everyone.

Investment involves risk and is not suitable for everyone.