Montanaro UK Smaller Companies - Overview from QuotedData
14th June 2024
A coiled spring?
Charles Montanaro, the manager of Montanaro UK Smaller Companies Investment Trust (MTU), has remained stalwart in the face of investor aversion to the UK equity market. His bullishness is based on the increasingly attractive valuations being assigned to UK equities, as many of MTU's holdings continue to generate decent earnings based on their historic performance, with several reporting their highest ever annual revenues.
There may also be catalysts ahead that could precipitate a positive shift in investor sentiment, thanks to declining UK inflation (which could soon lead to lower interest rates), higher than expected GDP growth and generally robust UK businesses and consumers.
Improving sentiment could be a powerful boost to MTU shareholders' returns, not only as its net asset value (NAV) rebounds but also as its wide (currently 15.8%) discount to NAV narrows. The discount is sufficiently attractive that MTU's own management have seen fit to purchase another 1% of MTU's outstanding shares.
Full Research:
https://quoteddata.com/research/montanaro-uk-smaller-companies-a-coiled-spring-qd/
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NB: Marten & Co was paid to produce this note on Montanaro UK Smaller Companies Investment Trust Plc, and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the Financial Conduct Authority. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.
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