Sector-wide thematic calls boost returns

Top-performing smaller companies managers concur that calls on industrials and resources have been key factor in outperformance

Thematic calls on industrials and resources have boosted returns among the top-performing smaller company funds across Europe, America and Japan. Swip's Rory Hammerson, whose Pan-European Smaller Companies fund ranked first out of 14 in that peer group over three years, said his near 40% allocation to industrials has been a key factor. "We continue to identify very strong companies, whose long-term share power is not reflected in today's market - stocks are cheap relative to discounted cashflow," he said The investment community is questioning the sustainability of these firms but the...