Mar 05 2025 55 mins 3
This week Nick talks to George Ensor
George Ensor is the portfolio manager for the RGI UK Listed Smaller Companies Fund and the River UK Micro Cap Investment Trust. He joined River Global Investors in 2014 as a UK equity analyst, following his role as a private client investment manager at Smith & Williamson Investment Management. George holds a degree in Chemistry from the University of Bristol and is a CFA Charterholder.
Nick and George discuss, his journey into investment management, starting with his chemistry degree and eventual move into equities, driven by the challenge of taking contrarian views in the market. He outlines his experience at Smith & Williamson, where he gained exposure to global multi-asset management, client service, and investment allocation. Transitioning to River Global (formerly River & Mercantile), he details the firm's evolution, including its listing and eventual return to a boutique-style setup. He explains the structural differences between open-ended small-cap funds and closed-ended micro-cap investment trusts, emphasising how micro-cap funds exploit liquidity premiums and offer high-conviction investments.
George also discusses the challenges and opportunities within UK small-cap investing, noting cyclical market trends, liquidity constraints, and shifts in investor sentiment. He highlights how UK small caps have been underperforming large caps due to external factors like interest rates, economic cycles, and regulatory changes. He believes in the long-term growth potential of UK small caps, citing past market recoveries and potential reforms such as pension fund adjustments and British ISAs. The conversation further delves into investment strategies, including the balance between growth, quality, and recovery stocks, and explores specific holdings like Keystone Law, DF Capital, and Renold. He expresses concerns about undervaluation in the market, private equity takeovers, and the impact of passive investing on small-cap liquidity. Despite current challenges, he remains optimistic about the cyclical return of capital inflows into UK equities and the opportunities available for disciplined investors.
George's book choices where:
Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts - Annie Duke
https://www.amazon.co.uk/Thinking-Bets-Annie-Duke/dp/0735216371/
Quit: The Power of Knowing When to Walk Away - Annie Duke
https://uk.bookshop.org/p/books/quit-the-power-of-knowing-when-to-walk-away-annie-duke/7098911
George's music choice was:
The Best by Tina Turner
https://open.spotify.com/track/4OeFQtRyT7vsLnRTv7t8YT
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