Vantage: Laurence Hulse of Onward Opportunities on his new fund

In this interview, Laurence Hulse, investment director at Dowgate Wealth, joins us to discuss the IPO of Onward Opportunities (ONWD.L, market capitalisation £13m) amid a banking crisis. We learn what inspires and drives him, including his family, his former colleagues at Gresham House (GHE.L, market capitalisation £308m) and the writings of Ray Dalio. What comes across is a tenacity and a strong belief that there is a fantastic investment opportunity when looking at the UK market. We discuss the relative discount the UK market trades at, which goes back to the 2016 Brexit referendum, but Laurence suggests we have reached the nadir of the discount as relations with Europe thaw through deals such as the Northern Ireland Protocol negotiated by Prime Minister Rishi Sunak. We explore reasons why this valuation gap seems to persist. The fund is focused on looking for tangible businesses where there is a catalyst for change, which could lead to earnings and cash flows improving, and in time a re-rating of the stock. Laurence illustrates this with a former investment in IMImobile, which eventually was acquired by Cisco Systems (CSCO.Q, market capitalisation $190bn).