Find hidden value in small caps

To find undiscovered value, you have to look at small-caps, says professional stock picker Chris Hutchinson. Here, he tips three smaller London-listed stocks to buy now.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Chris Hutchinson, senior fund manager, Unicorn Asset Management.

Real undiscovered value lies within listed companies whose market capitalisation is below £50m. At these levels, there tends to be an absence of decent research, either from brokers or on the web. Most fund managers are put off as their funds are too large to take any meaningful position. So they miss the gems that exist across a diverse range of sectors. Typically these are run by strong management teams who are executing a focused and sustainable growth strategy. Here are three examples.

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