- Small funds with great management teams can do great things, but are tricky to find
- We screen for portfolios of limited size whose managers have demonstrated a good degree of skill
Good stockpicking can often be about finding household names before they are just that. Unearthing such gems before they are recognised by the wider market is a tricky task, but one that can pay off handsomely.
A similar logic applies in the funds universe. Behemoths such as Fundsmith Equity (GB00B4Q5X527) draw plenty of attention, but smaller portfolios can show plenty of promise. On top of this, a manager with a smaller fund is often hungrier to perform well and has none of the potential liquidity concerns that come with running bigger sums of money.