Sid Chand Lall highlights the importance of stock-picking expertise

He says the smaller companies market, like any other, is highly diverse – and that a ‘one size fits all’ approach is not the best strategy. Instead, he says investors should take a closer look at the principal drivers of performance over time.
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Sid adds that rather like the dominance of the ‘Magnificent Seven’ tech giants in driving US stock market returns, a handful of UK companies were powerful performers during the COVID crisis and in its immediate aftermath.
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However, he argues that more recently success has been more likely to come from the opposite end of the market-cap scale. Smaller companies have frequently been the main drivers of returns over the past 12 months or so.
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In addition, he explains how sticking with a tried and trusted investment process can pay off over the long term and focuses on three companies that have performed well for the fund.

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.