The global equity strategy concentrates on large capitalisation stocks, generally well over US$10bn – the average market capitalisation of companies whose shares we hold is typically US$60-70bn. However, we frequently find interesting and undervalued companies that are smaller than this and  the Smaller Companies portfolio is the home for such ideas. The fund has invested in companies with market capitalisations as low as US$50m.

The portfolio is managed by Harry Fraser, who joined us from Herald Investment Management, a small cap specialist, in August 2011, and has managed this strategy from 1st January 2012. The portfolio is managed with the same philosophy as that of others at OP – concentrated and index ignorant, with the usual emphasis on valuations.