The small-cap sector, a really tough place to pick winners

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The small-cap sector, a really tough place to pick winners
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[NEW EPISODE] keithmclachlan of IntegralAssetManagement chats about the small caps sector and gives his views on the prospects of many companies' shares on Be A Better Investor podcast with Ryk_van_Niekerk Download the Ep in the link. Moneyweb

RYK VAN NIEKERK: Welcome to this week’s addition of the Be a Better Investor podcast. It’s the podcast where I pick the brains of some of the top professional investors in the country and we delve into their own personal investment approaches.

McLACHLAN: It honestly depends which portfolios and mandates you are looking at because we, for example, have some much more defensive broader and well-diversified ones. Then we have far more concentrated ones. I run, for example, a small and mid-cap mandate as well, and we run some large caps offshore.

McLACHLAN: That is a good question. In the small-cap fund that I used to run we held Capitec from the beginning. That was an absolute multi-bagger and in fact, we would’ve carried on holding it, but it moved out of our mandate and moved into the Top 40. That’s a good example of an excellent investment, and bought for all the right reasons, held for the right reasons, and then sold because of a technicality.

McLACHLAN: My goal is to generate the maximum sustained return for the longest period possible. But more seriously, because that’s every investor’s goal, risk-adjusting. But what I do on my personal account, my objective [is] to hold somewhere between 15 and 30 companies, all on the JSE and all around the world.

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