Four small cap stocks our managers are backing
In this month's Fund Focus we take a closer look at the smaller businesses our investment managers believe are well placed to navigate today’s changing market conditions.
Strategic asset allocation sits at the core of our investment approach. It provides a long-term framework for delivering returns by spreading risk across a wide range of assets, including equities, bonds, property and alternative investments. Within this mix, smaller companies (or small caps) play an important role.
Small caps can be more volatile in the short term, with share prices that move more than those of larger firms. But they also bring different opportunities, which makes them useful for diversification. This can help smooth out returns across the portfolio. While small caps do not always outperform, history shows they have often delivered stronger returns than large caps in the right conditions.
Omnis invests by appointing some of the world’s leading investment managers, selected through a rigorous due diligence process. Each manager is chosen for their expertise in accessing effective, diverse, and often specialised asset classes across global markets. We monitor them continuously, and if changes to their approach or team mean they’re no longer the best fit, we act decisively to appoint a new manager, so you can be confident the right expertise is always in place.
Against this backdrop, we asked some of our investment managers to share examples of the smaller businesses they believe are well positioned for today’s environment. Here are four that stand out:
