Five of the Best: UK M&A targets

Alex Wright is manager of the £7m Fidelity UK Opportunities fund. The top-performing fund has returned 83.5% to investors over the last three years, ahead of the UK Smaller Companies sector average of 25.4%.

Exposure to groups subject to M&A activity has boosted recent performance on the fund, and below the manager names five UK stocks which may be next in line for a takeover. 1. Xchanging Having underperformed considerably, the new chief executive (formerly the chief financial officer) is focusing on margins and exiting poor performing businesses following overexpansion. It is likely to emerge a smaller, stronger and more profitable business which could be a bite size M&A target for a larger support services company. 2. Capital Pub Company The small London focused pub operator is val...