Three British small cap bargains to boost profitability

Three British small caps to invest in, from Edward Wielechowski of the Odyssean Investment Trust.

Royal Exchange building and skyscrapers of London city, high angle view, London, England, UK - stock photo
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At Odyssean Investment Trust we invest in high-quality businesses trading below their fundamental value where management can drive an improvement in underlying performance. We focus on UK smaller companies. We believe that this part of the market commonly fails to appreciate the medium-term potential of a business going through a transformation, instead being more focused on near-term momentum.

This leaves an opportunity for our detailed diligence process to identify investments where management self-help actions can drive operational improvement; we aim to invest before this is priced in by the wider market. As this change is delivered, we hope to then see a double benefit with earnings improving, but also increased interest as more investors buy into the story. Our portfolio today contains a number of these exciting self-help special-situation opportunities.

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Ed Wielechowski
Portfolio Manager

Ed joined Odyssean in December 2017 as a fund manager. Prior to joining Odyssean, Ed was a principal in the technology team at HgCapital. He joined HgCapital in 2006 and worked on numerous completed deals, including multiple bolt-on transactions made by portfolio companies. He has additional quoted market experience having led all aspects of the successful IPO of Manx Telecom plc in 2014 as well as having evaluated and executed public to private transactions.

Ed started his career as an analyst in the UK mergers and acquisitions department of JPMorganCazenove in 2004.