Richard Plackett, manager of BlackRock's UK Special Situations fund, reveals the favourable characteristics he looks for in medium-sized companies.
We believe we can add significant value as stock-pickers by investing in the small and mid-cap area. Here, businesses are immature as compared to their larger FTSE 100 brethren and typically change more quickly. Small and mid-caps have historically outperformed significantly in the UK Historically, immature companies on average have grown their top line faster than large organisations. In a relatively slow growth world such as the one we have at present, it is critically important to own companies with a higher rate of organic growth. In finding these companies, we try to own mid-caps...
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