Three quality companies to try now

Professional investor Stuart Widdowson looks for smaller companies that are market leaders in their niche, with strong management teams and sound balance sheets. This way, he finds quality companies that deliver growth at a reasonable price. Here, he picks three stocks that fit the bill.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week:Stuart Widdowson, investment manager at SVG Investment Managers.

The best long-term returns from smaller firms come from quality businesses that trade on modest multiples of underlying cash flows. They should also trade at a significant discount to the price trade purchasers or private-equity houses would be prepared to pay to own 100% of them.

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Stuart Widdowson

Stuart is a professional investor and Managing Partner at Odyssean Capital LLP. Prior to this, Stuart was a fund manager of strategic funds at GVQ Investment Management Limited for just over 10 years and then he spent 6 months as a partner at Harwood Capital to establish a new fund management business. He has been at Odyssean Capital LLP for just over 5 years and he has contributed to MoneyWeek’s share tips.