Komal Sri-Kumar, manager of the £136m SG American Growth fund, says he is waiting for the market to catch up with his conviction in larger company stocks.
He altered the strategy of the fund six months ago to fully back his conviction in large cap companies.
One of the four sub-portfolios within the fund changed its name from Large Cap Growth to Focused Growth and the number of holdings within it was cut from 40 to 25.
“It’s a much more focused bet that large cap will do well,” Sri-Kumar says.
“It’s a focused portfolio of 25 companies. We are likely to persist with focused growth for a year longer. Large companies are going to dominate,” he adds.
The Focused Growth portfolio, managed by Donald Evenson, makes up 48% of the SG American Growth fund.