One of the consequences of the dominance of the mega-cap growth stocks in the US over the last decade or so is that there is a huge amount of concentration risk. Many funds own the same stocks because they use the same investment process, which is to buy growth stocks, no matter where we are in the economic cycle.
The VT Tyndall North American Fund takes a different approach. It looks first at where we are in the business cycle, and then constructs the portfolio accordingly. There are times when growth as an investment style does not work – 2022, for example – and it is important to avoid periods of major stock market declines in order to bolster long-term returns: the Nasdaq slumped by 33.1% last year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Formula One roars ahead in America
Cleaning up the competition
More from MoneyWeek:
-
How high earners could boost their pension by thousands and cut childcare costsSalary sacrifice could boost your pension by thousands, while also helping you save on childcare costs. We delve into the numbers.
-
Monzo launches 11 ETFs via Blackrock to help savers investMonzo customers can now invest BlackRock's iShares ETF range via its banking app, making investing more accessible to millions
-
Where to invest in the metals that will engineer the energy transitionA professional investor tells us where he’d put his money. This week: John Ciampaglia, manager of the Sprott Energy Transition Materials UCITS ETF.
-
Three British stocks offering all-weather incomeTips A professional investor tells us where he’d put his money. This week: Brendan Gulston, co-manager of the LF Gresham House UK Multi Cap Income Fund.
-
Incredible India: the world’s biggest democracy is set for decades of growthOpinion A professional investor tells us where he would put his money. This week: Gaurav Narain, manager of the India Capital Growth Fund, selects three favourites.
-
5 travel stocks to buy ahead of the busy summer holiday periodTips It may be getting more expensive to go on holiday but you can at least try to make some money back by investing in the travel sector
-
The best performing stocks over five years ‒ and what they could have made youAnalysis If you backed the right stock, then a £1,000 stake could have turned into £45,000 over the last five years
-
3 VCTs to consider as we near the end of the tax yearTips Venture Capital Trusts come with risks, but offer generous tax allowances that could entice investors ahead of the tax increases coming in April.
-
Profit from the rise of shareholder activism in Japan’s small companiesTips A professional investor tells us where he’d put his money. Daniel Lee, head ofJapan Research, AVI Japan Opportunity Trust, highlights three promising stocks.
-
3 stocks to buy in a high interest rate environmentTips We take a look at three stocks to buy in a high interest rate environment that should be able to navigate economic uncertainty.
