Richard Penny of TM Oberon UK Smaller Companies Fund discusses small-cap stocks and his 100-baggers

In this very special episode of the podcast, the team are joined by Richard Penny, legendary manager of the TM Oberon UK Smaller Companies Fund (BQV37J7). Richard is recognised for his long-standing success in special situations and small-cap investing. Since launch in late 2022, TM Oberon UK Smaller Companies has outperformed the IA UK Smaller Companies sector and as of end August 2026, was the best-performing UK smaller companies fund over two and three years. Our special guest tells viewers how he goes about identifying potential ‘100 baggers’, and why ROIC (return on invested capital) plays a part in his decision-making process when it comes to stock selection. Finally, Richard insists that despite the stellar returns generated by his fund in recent periods, investors haven’t missed the boat. Penny believes his portfolio is well-positioned to benefit as the recovery in UK smaller companies gathers pace.