All·December 12, 2025

UK SmallCap: the AIC on why valuations may be at a turning point

By Ed Heaven
Chief of Staff / Head of Sustainable Investments

UK smaller companies have been out of favour for an extended period, leaving valuations at levels that have historically created attractive long-term opportunities for active investors. Periods of weak sentiment and depressed pricing have often been followed by strong recoveries as fundamentals reassert themselves. At Montanaro, our long-standing focus on investing in high-quality UK smaller companies positions us well to take advantage of this environment through disciplined stock selection and a long-term investment horizon.

Read more from the AIC on why UK small-cap trusts could be set for a turn:
https://www.theaic.co.uk/aic/news/industry-news/small-stocks-big-bargains-why-uk-small-cap-trusts-could-be-set-for-a-turn

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