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I have been a follower of Geoff Wilson ever since his initial float was recommended by Rene Rivkin.
As I understand it, he mainly invests in smaller caps and performs very well. I am wondering whether it’s time to switch more funds to the smaller end of the market via say, Ausbil’s managed fund and/or Chris Hemming’s ‘Under The Radar’ recommendations. I would appreciate your views (perhaps after today sitting tight for a bit may be best?).
A: Thanks for the question.
On the whole, smaller companies have been doing better than the top 20 stocks recently.
To close of business yesterday, the S&P/ASX 20 was down 9.47%, compared to the Small Ordinaries (stocks numbered 101 to 300 by market cap), which had lost 6.85%. This follows on from the trend from 2015, where small caps did better than large caps.
Notwithstanding the data above, I think it makes sense to have an exposure to small/mid cap companies. Arguably, these are the growth companies of the future. With a lower AUD, many of the non resource companies should be in a position to benefit.
Geoff Wilson is an excellent manager, have a look also at Contango and Mirrabooka.
