IA UK Smaller Companies
“ At some stage they will be a screaming buy like they were at the end of the Covid sell-off , because they always get oversold if things are bad ”
Darius McDermott Managing director at Chelsea Financial Services
make the position meaningful ,” he says . “ As a result , I tend to prefer my small-cap funds to be below £ 1bn .”
Put it in perspective Darius McDermott , managing director at Chelsea Financial Services , points out a 20 % drop in the value of small caps is insignificant in the grand scheme of things . “ While I am not jumping in with my size-nines yet , I already own some small caps , so you just have to take it on the chin ,” he says . “ At some stage they will be a screaming buy like they were at the end of the Covid sell-off , because they always get oversold if things are bad .” Paul Marriage , manager of the TM Tellworth UK Smaller Companies fund , notes that when you invest in smaller companies , you are generally buying businesses when they are growing the fastest . “ I sometimes think about it as if we ’ re buying companies that can
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