Vantage: Richard Penny on why now is a good time to launch a small cap fund

With economic uncertainty one might assume investors would flock to larger, more established companies. However, Richard Penny, portfolio manager of the newly launched TM CRUX UK Smaller Companies Fund, believes there are hidden gems to be found in the small cap market. He argues that, despite the current market conditions, the small cap market offers long-term growth opportunities at a relatively lower cost.

To illustrate his approach, Penny points to companies such as FD Technologies (FDP.L), WANdisco (WAND.L), IQE (IQE.L), MaxCyte (MXCT.L), Xaar (XAR.L), Iomart (IOM.L), HUTCHMED China (HCM.L), Auction Technology Group (ATG.L), Trustpilot (TRST.L) and Sondrel (SND.L) as examples of the type of companies he is targeting for the fund. These companies operate in growth-oriented sectors, such as data and technology, which have the potential to generate significant returns for investors over the long term.

Penny is confident that by focusing on small cap companies with strong fundamentals and growth prospects, the TM CRUX UK Smaller Companies Fund will be able to deliver robust returns for investors, despite the economic headwinds.