Proactive: Smithson Investment Trust’s high-conviction small cap strategy - One2One Investor Forum (video)

Smithson Investment Trust PLC (LSE:SSON) portfolio manager Simon Barnard talked with Proactive at the One2One Investor Forum about the trust’s focused approach to small and mid-cap investing. He explained that the strategy is designed to identify high-quality businesses with strong competitive advantages and long growth runways.

“We make you money by buying small companies that are going to become big companies,” Barnard said. The portfolio is concentrated, holding around 30 stocks, and is built on rigorous selection criteria, including strong cash conversion, high returns on invested capital and conservative financing.

Barnard discussed the importance of valuation discipline, noting that even the best companies can be poor investments if bought at the wrong price. He highlighted how Smithson looks for opportunities arising from market dislocations, cyclical lows or temporary glitches that create attractive entry points.

He underscored that Smithson Investment Trust has consistently outperformed its benchmark despite challenging small-cap conditions since 2018.

Watch the video here:  https://www.proactiveinvestors.co.uk/companies/news/1074928/smithson-investment-trust-s-high-conviction-small-cap-strategy-one2one-investor-forum-1074928.html