Small caps with big potential

Well-managed smaller companies offer plenty of growth potential, says professional stock picker Mike Prentis. Here, he tips three small-cap growth stocks for the medium term.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Mike Prentis, portfolio manager, BlackRock Smaller Companies investment trust.

Our investment approach is most simply described as trying to find and invest in companies which have the potential to become much larger over the medium term. We ensure our portfolios are mainly composed of our highest-quality core holdings most have fared well in widely differing economic conditions. We have stringent criteria for our core holdings.

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Mike Prentis is manager of the BlackRock Smaller Companies Trust.