Vantage: UK small caps’ potential revival – Richard Staveley on Rockwood Strategic’s active approach

Why are UK small caps trading at such compelling discounts? In this Vantage interview, Richard Staveley, fund manager of Rockwood Strategic (LSE: RKW, market capitalisation £135m), reveals why the ingredients may be in place for a significant revival in the UK’s most overlooked market segment. From AAA-rated performance and 170% NAV returns over five years to activist engagement and strategic corporate actions, Richard demonstrates how patient, concentrated investing in deeply undervalued companies continues to deliver exceptional returns – even when investing conditions are difficult.

Richard discusses the catalysts needed to bridge the performance gap between the UK top 100 companies’ strong showing and lagging small caps, including the crucial role of interest rate cuts and potential budget measures. He shares insights validating his perspective, such as Spectris’s 100% bid premium, and explains how Rockwood’s concentrated, recovery-biased approach – with the majority of capital in the top 10 holdings – identifies and patiently helps deliver shareholder value through strategic engagement with all stakeholders.

Watch the full interview to understand why UK small caps represent one of the most compelling value opportunities in global markets and how Rockwood’s differentiated approach continues to unlock hidden value in overlooked companies.