Small Caps so far in 2022 – is this a longer-term opportunity?

While it is important to understand the top-down economic and market forces it can be dangerous to think purely in general terms. Small companies can successfully operate in niche markets, be less subject to broader trends and be more nimble than larger operations. As a result, it makes sense to focus on understanding an individual company’s ability to deliver in the current environment. Talking to management to really grasp the opportunities and challenges they face is key. In recent weeks we’ve checked in with many of our investee companies, exploring how the conflict has impacted their business and seeking reassurance over the safety of staff. These conversations showed that that the experience of Covid-19 had encouraged many companies to actively manage their supply chains to mitigate the knock-on effects from unpredictable events.