When choosing a unit trust fund we generally advise investors to stick with the big names in the industry and funds with a decent track record.
But Thomas Schlebusch, chief investment officer at Blue Ink Investments, said by excluding smaller, early stage funds from their portfolios investors could be missing out on the opportunity for significant outperformance.
Schlebusch says among the advantages of investing in early stage funds size is one of the biggest factors.
“Early stage funds are by their nature generally small and the manager is therefore quite agile, with the capability to harvest many smaller opportunities versus their larger counterparts.”
He said rather than following one type of investment strategy investors should diversify a portfolio across large and small funds.
- Finweek
But Thomas Schlebusch, chief investment officer at Blue Ink Investments, said by excluding smaller, early stage funds from their portfolios investors could be missing out on the opportunity for significant outperformance.
Schlebusch says among the advantages of investing in early stage funds size is one of the biggest factors.
“Early stage funds are by their nature generally small and the manager is therefore quite agile, with the capability to harvest many smaller opportunities versus their larger counterparts.”
He said rather than following one type of investment strategy investors should diversify a portfolio across large and small funds.
- Finweek