Ken Wotton: Volatility is throwing up really interesting opportunities

UK small caps have struggled against their larger cap peers in recent months, but if you can avoid the banana skins there are some very attractive entry points for businesses, according to Ken Wotton, manager of Strategic Equity Capital investment trust. In this interview, Wotton tells the IC’s Mary McDougall where he thinks the best opportunities are, why he likes to run concentrated portfolios and what he has been buying and selling recently. He also describes how he approaches valuing companies, to what extent macro economic factors play into his decision making and what he wishes he had known when he started his career.Timestamps:00:00 - Intro01:35 - Outlook for UK small caps03:30 - Preferred valuation metrics04:55 - Profitable holdings05:48 - Macro factors effecting investment decisions08:40 - Changes to Strategic Equity Capital since you took over12:28 - Largest proportion of a company you own?14:07 - Would you consider yourself an activist investor?15:05 - Fund size16:12 - Favourite holdings20:10 - M&A as part of investment case22:25 - Quality UK PLC's leaving the market23:52 - Participating in IPO's24:39 - Healthcare and financial services sectors26:57 - Filtering companies28:05 - Areas of expertise29:58 - Advice for your past self31:02 - A book that's influenced youInvestors' Chronicle has supported private investors in the UK for over 160 years by highlighting rewarding investment opportunities. Investors' Chronicle is a service by the Financial Times. Hosted on Acast. See acast.com/privacy for more information.