Unraveling the complexity of small cap markets in 2023, January 2024

Paul Marriage, manager of the TM Tellworth UK Smaller Companies fund, reflects on the previous year's market performance and why the anticipated recovery in smaller companies didn't materialise as expected. Paul delves into the nuances of the small-cap sector, emphasising the impact of M&A and impact of falling interest rates on UK smaller companies.

We take a deeper dive into the recent challenges faced by UK companies, such as higher input costs and strained supply chains, offering a comprehensive assessment of their recovery and the outlook for profit margins. Paul shares insights into two promising investment opportunities within the UK small-cap space: GlobalData and Wilmington in the media sector, and Gooch & Housego in hi-tech engineering.