Paul Hill's tip of the week: large or small-cap stocks?

Top investor Paul Hill on the differences between blue chip and small-cap investments. And an exciting investment opportunity from one area.

Is it best to go for large or small-cap stocks? It's a question investors often debate. Most FTSE 100 companies are covered in minute detail by numerous research analysts, so the share price of large firms tends to reflect their fair values more closely than small caps, solely because of the greater exposure. However, opportunities arise in both sectors, and astute investors will not limit themselves to just one area. Take this blue chip share...

Tip of the week: HSBC (HSBA, 965p), tipped as a BUY by The Times

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.