Shares in the good-quality growing businesses that Montanaro UK Smaller Companies (MTU) seeks to buy appear to have experienced a sharp selloff since the beginning of 2022, when interest rates began to rise in response to rampant inflation.
Manager Charles Montanaro says he is focused on picking stocks for the long term rather than trying to second-guess macroeconomic trends. He and his extensive team aim to have a strong dialogue with the management of these companies. He observes that high-quality, well-managed small businesses with strong market positions and pricing power have been able to pass on additional costs and are better able to cope with supply chain disruptions. Charles believes that following the selloff, valuations are now the most attractive that they have been in many years.
04 Jul 2022
Montanaro UK Smaller Companies - Selloff provides opportunities
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Montanaro UK Smaller Companies - Selloff provides opportunities
Montanaro UK Smaller Companies Investment Trust PLC (MTU:LON) | 0 0 (-0.9%) | Mkt Cap: 174.5m
- Published:
04 Jul 2022 -
Author:
James Carthew | Matthew Read | Jayna Rana -
Pages:
22
Shares in the good-quality growing businesses that Montanaro UK Smaller Companies (MTU) seeks to buy appear to have experienced a sharp selloff since the beginning of 2022, when interest rates began to rise in response to rampant inflation.
Manager Charles Montanaro says he is focused on picking stocks for the long term rather than trying to second-guess macroeconomic trends. He and his extensive team aim to have a strong dialogue with the management of these companies. He observes that high-quality, well-managed small businesses with strong market positions and pricing power have been able to pass on additional costs and are better able to cope with supply chain disruptions. Charles believes that following the selloff, valuations are now the most attractive that they have been in many years.