Fund of the week: Old hand is ahead of the game

Most investors probably haven’t heard of Paul Mumford, but as head of the £31m Cavendish Opportunities Fund, he’s one of the most experienced managers around.

Most investors probably haven't heard of Paul Mumford. That's a pity. As head of the £31m Cavendish Opportunities Fund, he's one of the most experienced managers around. After cutting his teeth in the 1960s as a stockbroker with Norris Oakley Brothers, he went on to set up the Opportunities fund in 1988. He's still there today and still churning out profits. Over the past five years, he's returned 188% against 131% for the FTSE Small Cap Index.

Focusing on small-cap growth stocks, Mumford believes the market "has underperformed in the last month. As such, it's becoming attractive again. It has the advantage that a lot of its ratings are low", he tells the Financial Times. "We seek to invest in companies that would not look expensive in 12 to 18 months' time," even if the share price doubled over that period, he says.

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