As 2018 draws to a close, there is much to feel nervous about.
The UK is set to leave the European Union in March 2019 and a deal is yet to be agreed; investors have experienced a profound sell-off over the past few months; trade tensions have escalated between the US and China; and the global economy appears to be cooling.
Ken Wotton, manager of the LF Gresham House Multi Cap Income fund, noted that Brexit is likely to cause further volatility in the UK market. Nevertheless, investors must remember that this will create selective opportunities.
“While large-cap businesses are generally impacted by macro factors, the agility and niche positioning of smaller companies may allow them to react positively to broader economic headwinds,” he said.
He believes Inspired Energy, which provides energy advisory services, is poised for strong performance in 2019.
“While it advises mid-sized corporations, Inspired Energy is paid in commission from contracts with large energy suppliers, with payments based on the energy usage companies incur. This guarantees multi-year revenue and high earnings visibility for the business,” Wotton said.
Gresham House plc (LON:GHE) is an AIM quoted specialist asset manager providing funds, direct investments and tailored investment solutions, including co-investment across a range of highly differentiated alternative investment strategies. Our expertise includes strategic public and private equity (private assets), forestry, renewable energy, housing and infrastructure, The Group aims to deliver sustainable financial returns and is committed to building long-term partnerships with clients, (institutions, family offices, high-net-worth individuals, charities and endowments and private individuals) to help them achieve their financial goals.