Three hidden gems in the UK small-cap sector challenging their larger peers

Pharma sector and specialist managers among picks

The small and mid-cap market is regularly associated with high levels of risk and volatility, writes Ken Wotton, manager of the Livingbridge UK Multi Cap Income fund.

However, the reality is vastly different to the perception, particularly in the current market climate. As political uncertainty floods the UK market, many smaller companies are thriving against larger, more cyclical peers. While large-cap businesses typically are heavily impacted by macro factors, the agile demeanour and niche positioning of smaller companies gives them the potential to navigate more smoothly through broader economic headwinds. Small-cap managers brace for reporting season amid MiFID II research 'degradation' Despite this, smaller stocks still fall under-the-radar...