One of the UK’s leading small cap fund managers says there is ‘real enthusiasm’ in the market for quality stocks at the lower end of the market cap spectrum.

Speaking on the Shares/AJ Bell Money & Markets podcast, Anna Macdonald from Amati says ‘small caps have been surprisingly resilient’ during the market downturn this year.

In the podcast, you can hear why she sold shares in Hollywood Bowl (BOWL) in March and discover the names she’s been buying recently including Softcat (SCT) and Gear4Music (G4M:AIM).

‘Gear4Music are doing really, really well. I’ve visited their warehouse and can see how they can achieve social distancing while keeping the business and deliveries going,’ she says.

Macdonald explains how many small cap companies are still really busy despite the country being in lockdown, and how her diary is full with remote meetings such as talking to the bosses at computer games group Sumo (SUMO:AIM), whose shares have just hit an all-time high.

’Really big studios like Apple, Microsoft and Sony trust Sumo to do a lot of their high value added games development and they also do some of their own games development,’ she says.

The fund manager also discusses in the podcast how she has invested in Synairgen (SNG:AIM) and other stocks looking to treat coronavirus or help pharma companies to find a vaccine.

‘The prize is to make sure the pandemic comes to an end with the least loss of life possible. We want to invest in companies that are going to be able to help deliver that.’

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Issue Date: 30 Apr 2020