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Eustace Santa Barbara highlights ‘rare long-term opportunity’ in smaller companies


In our latest video update, Eustace Santa Barbara, Co-Manager of Marlborough’s three UK smaller companies funds – Special Situations, UK Micro-Cap Growth and Nano-Cap Growth – explains why the investment team are genuinely excited about current valuations and believe they represent a rare long-term opportunity.

He says the team, which is one of the largest and most experienced in the UK smaller companies arena, remain absolutely committed to their investment strategy, despite a challenging period for small caps. They are passionate believers in the growth potential of these innovative and agile businesses – and their ability to continue to outperform their larger counterparts over the long term.

Eustace says investor sentiment towards smaller companies could change very quickly, with easing inflation or interest rate cuts among the potential catalysts. Eustace adds that Chancellor Jeremy Hunt’s ‘Mansion House Reforms’ – moves to encourage investment in high-growth UK companies – could provide an important boost to the AIM market, which is a key focus for all three funds.

Risk Warnings

Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds. Our funds invest for the long-term and may not be appropriate for investors who plan to take money out within five years. The Fund will be exposed to stock markets and market conditions can change rapidly. Prices can move irrationally and be affected unpredictably by diverse factors, including political and economic events. The Fund will be exposed to smaller companies which are typically riskier than larger, more established companies. Difficulty in trading may arise, resulting in a negative impact on your investment. Shares in smaller companies may be harder to sell at a desired price and/or in a timely manner, especially in difficult market conditions. The Fund invests mainly in the UK therefore investments will be vulnerable to sentiment in that market which may strongly affect the value of the Fund. In certain market conditions some assets may be less predictable than usual. This may make it harder to sell at a desired price and/or in a timely manner. In extreme market conditions redemptions in the underlying funds or the Fund itself may be deferred or suspended.

Regulatory Information

This material is provided for general information purposes only and is not personal advice to anyone to invest in any fund or product. Information taken from trade and other sources is believed to be reliable, although we don’t represent this as accurate or complete and it shouldn’t be relied upon as such. Calls will be recorded for training and monitoring purposes.

Issued by Marlborough Investment Management Limited, authorised and regulated by the Financial Conduct Authority (reference number 115231). Registered office: Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Registered in England No. 01947598. Investment Fund Services Limited (IFSL) is the Authorised Fund Manager of the Fund. IFSL is registered in England No. 06110770 and is authorised and regulated by the Financial Conduct Authority. Registered office: Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Copies of the Prospectus and Key Investor Information Documents are available from or can be requested as a paper copy by calling 0808 178 9321 or writing to IFSL at the registered office above. Source: FTSE