Many of our clients are aware that the Dynasty House-view Funds include a relatively minor weighting to the global small and mid-cap sector via Smithson, a listed UK-listed Investment Trust. In this five-minute video interview, Jill Carey Hall, head of small and mid-cap strategies at Bank of America, explains why stocks in this sector, particularly “value” companies with free cashflows, offer a compelling alternative to the mega “growth” shares which tend to dominate major indices such as the S&P.
From a Dynasty perspective, we are aware that our portfolios contain a measure of replication of certain large cap stocks across different tracker instruments and active managers. For this reason – and to enhance aggregated return prospects by accessing a lesser researched segment of the equity market – we are evaluating increased exposure to small and mid-caps in our Funds and are currently conducting research on different managers and instruments.
