LGIM's Penny looks for fallen angels of small-cap universe

Manager of £173m UK Alpha trust uses barbell approach to find unloved value and growth ideas against volatile backdrop and macro headwinds.

Richard Penny’s strategy of investing in the fallen angels of the mid- and small-cap arenas has led his fund to struggle during the past year of extreme market volatility. Many investors have sold down small caps in favour of mega-cap defensive names, with the likes of Vodafone and AstraZeneca featuring in the majority of UK equity funds’ top ten holdings. Legal & General Investment Management (LGIM)’s UK equity specialist Penny has seen his £173m UK Alpha trust drop into the third quartile of the IMA UK All Companies sector on a one-year view. However, Penny is sticking to his ...