Britain is in the bargain basement: buy small- and mid-caps for the bounce

A professional investor tells us where he’d put his money. This week: Richard Penny, manager of the TM CRUX UK Special Situations Fund, selects three stocks.

city of london
(Image credit: © Getty Images)

The TM CRUX UK Special Situations Fund contains mostly mid- and small-caps and targets capital growth over the long term. We have traditionally done best when the stockmarket recovers and we like to buy long-term growth companies when times are difficult.

This has proved very profitable for us over 17 years: over this period we have returned 10.4% versus 6.2% for the IMA UK All Companies sector. Performance has been highly biased towards recovery periods and we delivered 168% and 150% returns in the recoveries of 2009 and 2020.

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Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.