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AIM FOR THE STARS
James Henderson of the Henderson Opportunities Trust says the AIM index contains the next generation of UK companies that could drive the economy for years to come
T HERE ARE ALWAYS
MONEY-MAKING INVESTMENT OPPORTUNITIES waiting out in the market and it is only lack of imagination and idleness that stop us professional investment managers from taking them . This is a fact I have needed to remind myself about in recent months . The UK can appear depressing with the Brexit debate ratcheting up to the point of angry disagreement in which everyone will be a loser and where real wages are falling . The large consumer stocks , property companies and utilities are facing strong headwinds , with a slowdown in economic activity predicted . There is also the structural challenge caused by yesterday ’ s strong franchises rapidly being reduced to today ’ s tired business models .
Think how Ladbrokes dominated the betting market only for its market share to be eaten away by the online platforms or the way internet clothes retail business ASOS went from a start-up to having a market capitalisation nearly the same as Marks and Spencer .
It is the rapid speed of change that is making some AIM-listed companies such a good hunting ground for opportunities , despite the economic backdrop . ASOS had a value of a few million pounds in 2005 and it now has a market value of £ 5bn ( Source : Bloomberg , February 2018 ). It is still listed on AIM .
Many of the new , young companies on AIM will fail but this will primarily not be the fault of the economy – rather their inadequacies as a business . In the same way the winners will succeed because of their own efforts and excellence of product . It is refreshing every time to meet and talk to a new young company on AIM .
6 trustnet . com