Active Management in UK Small Cap Sector

While still lagging behind the FTSE 100, UK smaller companies have shown improvement over the past year, with the FTSE Small Cap index recording a return of over 15% by July 25th.

The small caps sector presents an opportunity for active managers to make a significant impact. These companies are often overlooked by analysts, creating market inefficiencies that can be exploited. However, due to their volatility, small-cap managers may experience both exceptional and challenging years.

Stuart Widdowson and Ed Wielechowski, the managers of Odyssean (OIT), are currently experiencing success in this sector. Odyssean, a trust included in the IC’s Top 50 Funds list, has emerged as the top performer in its AIC sector, delivering a return of nearly 35% over the past year. After facing challenges since 2022, the trust’s fortunes began to change in the latter half of last year.