Darius McDermott: Are UK small-caps the big recovery opportunity?

Outperform over long-term

clock • 3 min read

UK smaller companies have proven their ability to survive especially over the past seven months, writes Darius McDermott. His latest article for PA explores the outperformance potential of UK small-caps

Resiliency has been the buzzword for UK smaller companies in the past four years. The left-right combination of ongoing Brexit uncertainty and the global pandemic could justifiably floor any small company - as ongoing concerns impact both sentiment and liquidity - and the early days of Covid were particularly challenging for the sector. Fast forward seven months and, while the market is by no means back to normal, UK smaller companies have proven their ability to survive. During the sell-off, UK equities fell more than 30%, according to data from FE Analytics, but it is the smaller, n...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

'New normal': Lessons for investors against a backdrop of uncertainty

'New normal': Lessons for investors against a backdrop of uncertainty

'There is a sense that the markets may have entered a new phase'

Kate Rainbow
clock 10 April 2025 • 3 min read
Global small-caps and the case for direct engagement

Global small-caps and the case for direct engagement

'We firmly believe these interactions have significant merit'

Tobias Bucks and Simon Wood
clock 07 April 2025 • 4 min read
Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

Into the Spider-Verse we go: Chris Justham assesses Trump Mk II

'The cognitive dissonance when your beliefs don't add up cause very real pain'

Chris Justham
clock 04 April 2025 • 3 min read