Our Funds
Irish-domiciled sub-funds of Montanaro Smaller Companies plc and UK OEIC sub-funds under the WS Montanaro banner, spanning global, European and UK strategies.
Independent since 1991
The Small & MidCap Specialists
We are an independent investment boutique focused exclusively on quoted Small & MidCap equities. We view our clients as our partners and seek to grow their investments sustainably over the long term.
- 1991 Founded in London by Charles Montanaro
- SMID Quoted Small & MidCap equities — our only focus
- 38 Specialists, including one of Europe's largest dedicated SMID research teams
- B Corp Certified B Corporation and carbon neutral in our operations
Who we are
Discovering “Hidden Gems” since 1991
Montanaro Asset Management Limited is an independent, specialist boutique founded in London in 1991 by Charles Montanaro. From our offices at 53 Threadneedle Street, we invest exclusively in quoted Small and MidCap companies across the UK, Continental Europe and Global Developed Markets.
We do our own work. One of the largest dedicated internal SMID research teams in the sector generates every idea we own — no reliance on third-party sell-side notes. That proprietary research is how we uncover the “Hidden Gems” that larger institutions overlook.
We describe ourselves as an “Oasis in the City”: a flat, family-spirited firm with no bureaucratic corporate layers, where short-term market noise is deliberately ignored in favour of patient, thorough analysis. All of our staff invest alongside our clients, so our interests are fully aligned.
Investment solutions
Four ways to invest with us
Open-ended UCITS funds, two London-listed investment trusts, dedicated sustainable strategies and segregated institutional mandates — all managed by the same team, to the same Quality Growth philosophy.
Our Trusts
Two independent London Stock Exchange-listed investment companies: MUSCIT (MTU LN) for UK smaller companies and MESCT (MTE LN) for Continental Europe.
Sustainable investing
A proprietary four-pillar ESG framework, strict ethical exclusions and dedicated Better World impact strategies mapped to the UN Sustainable Development Goals.
How to invest
Available across more than twenty intermediated platforms, through any stockbroker for our trusts, and via bespoke segregated mandates for institutions.
Our philosophy
Quality Growth, patiently applied
“You get what you pay for in life.” We would far rather pay a fair price for a superior business than a cheap price for a poor one.
We are purely bottom-up, fundamental stock pickers. We look for simple, transparent business models; consistent profitability and strong balance sheets; niche market leadership in secular growth markets; high and stable operating margins; high return on invested capital; and management teams we trust.
High-quality companies sustain those returns for far longer than standard corporate fading models predict. We call it “beating the fade”, and it is why our ideal holding period is forever.
Our culture
A different way of looking at things
Six principles have governed how we work since the firm was founded. They are not a poster on a wall — they decide who we hire, what we buy and how we treat our clients.
We are a family
A flat hierarchy with zero internal bureaucracy. A small, collaborative team focused entirely on client outcomes rather than on internal politics.
We are Quality Growth investors
A relentless search for “hidden gems” with competitive moats, genuine pricing power and a high return on capital.
We are Sustainable investors
ESG analysis is fully integrated into fundamental research — and we are committed to practising what we preach in our own operations.
We are in it for the long term
Patient capital, and comprehensive pre-investment due diligence that includes mandatory on-site visits to every company we back.
We do the work ourselves
One of the industry's largest dedicated in-house research teams, with zero reliance on third-party sell-side notes.
Our clients are our partners
High-touch service, transparent communication, and co-investment by every member of staff alongside the clients we serve.
Insights
Latest thinking from our research team
Thematic Deep Dives, portfolio manager commentary and our weekly macro chart — all written in-house by the people who manage your money.
The next leg of AI could belong to Smaller Companies
The second wave of generative AI is moving downstream. We look at how niche SMID software and infrastructure enablers capture economic value once the mega-cap buildout is complete.
Technoprobe: Europe’s Quiet AI Champion
By Adam Montanaro. A case study of the Italian probe-card leader whose components make it possible to test the leading-edge chips behind AI compute.
Space: The Next Investable Frontier?
Collapsing launch costs, satellite mega-constellations and Earth observation data — and the SMID-cap supply chain quietly enabling all three.
Net Zero Carbon: 2025
By Kate Hewitt. Financed Scope 1 & 2 emissions are down 87% against our 2019 baseline, and SBTi-aligned assets have risen to 43.4% of in-scope AUM.
The return of European SmallCap
By George Cooke. Historically cheap valuations, robust earnings surprises and structural tailwinds from electrification, reshoring and energy efficiency.
Waiting for the flames
By Ed Heaven. A critique of market consensus, passive concentration risk and the investor inertia that still surrounds climate risk.
Chart of the Week
One chart, every week
A single macro observation from our research desk, published each week and archived in full.
High Yield shrugs off rising rates and private credit stress
No margin for error: US equities yield little more than Treasuries
Mind the spread: French bonds now trade wider than the PIIGS
Real yields reach 15-year highs: can US equity valuations withstand it?
Credit spreads are tightening – but AI leaders are bucking the trend
Market leadership reverses as crowded themes unwind
Recognition
Awards and shortlists
Independent recognition of our sustainable investment work, our impact reporting and our specialist research.
Awards won
- Sustainable Investment Fund Management Group of the Year, 2025 — Investment Week
- ESG Champion of the Year, 2023 & 2024 — Investors’ Chronicle & Financial Times
- Best Impact Report, 2025 — Pensions for Purpose, for the Montanaro Better World Fund
2026 shortlists
- Investor for Purpose Annual Symposium 2026 Content Awards — shortlisted for thought leadership and impact reporting (22 September 2026)
- Investors’ Chronicle Celebration of Investment Awards 2026 — shortlisted across specialist asset management categories (16 September 2026)
- LGC Investment Awards 2026 — recognised in local government pension scheme asset management (26 August 2026)
Common questions
Montanaro in brief
What is Montanaro’s investment strategy?
We are bottom-up, fundamental Quality Growth investors. We buy high-quality, profitable niche market leaders with strong pricing power, simple business models, trustworthy management and a high return on capital — and we aim to hold them for the long term. Every idea originates from our own in-house research.
Why invest in Small & MidCap companies?
Quoted SmallCap companies have historically outperformed larger companies over the long term — the “SmallCap Effect”. Because they receive little or no sell-side research coverage, the asset class remains structurally inefficient. That inefficiency rewards firms prepared to do their own proprietary work, which is exactly what we have done since 1991.
How can I invest in Montanaro funds and trusts?
Our open-ended funds are available through more than twenty intermediated platforms, including AJ Bell, Hargreaves Lansdown, Transact, Quilter and Fidelity FundsNetwork. Our two London-listed investment trusts, MUSCIT (MTU LN) and MESCT (MTE LN), can be bought through any stockbroker. Segregated institutional mandates are also available for pension schemes, local authorities, charities and sovereign wealth institutions.
Is Montanaro a sustainable investor?
Yes. Montanaro is a Certified B Corporation, carbon neutral across its own Scope 1, 2 and operational Scope 3 emissions, and a signatory to the UN PRI and the UK Stewardship Code. A proprietary four-pillar ESG framework and strict ethical exclusions are integrated into every stage of our fundamental research, and we vote at 100% of portfolio AGMs.
Who is this website intended for?
The content of this website is tailored for Professional and Institutional Clients and must not be relied upon by Retail clients. Past performance is no guarantee of future returns and your capital is at risk. Small-cap securities can experience higher volatility and wider liquidity spreads than large-cap equities.
Get in touch
Speak to the people who manage the money
Our client relationship team covers the UK, Ireland, the Channel Islands, Continental Europe and the Nordics — and can put you directly in front of the analysts and portfolio managers running the strategies.
Montanaro Asset Management
53 Threadneedle Street
London EC2R 8AR
United Kingdom
Authorised and regulated by the Financial Conduct Authority. FCA Firm Reference Number 183211. Company Registration Number 03246931.