By Michael Kokalari CFA, chief economist, and Thai Thi Viet Trinh, senior economist.

The rise and regulation of finfluencers

In a year that has been characterised by a roller-coaster ride in sentiment, the end outcome is likely to be one that is very positive for those investors who blocked out the noise, held their noses and stayed in equity markets.

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.

Banco Angolano de Investimentos (BAI) is the largest Angolan bank by assets. It is a money centre, institutional-focused bank, with high investment and trading revenue, funded by a diversified deposit base. Its strong capital base and solvency position it for growth in an Angolan economic upswing. BAI’s low loan-to-deposit ratio provides optionality in the long term to drive higher returns on assets and equity. It started to roll out credit more strongly during FY24, a trend that has continued in H125.