The sudden spike in the valuation of 10-year US Treasuries has led to a pullback in prices of high growth US small caps – and therefore the performance of the Premier Miton US Smaller Companies fund, according to co-manager Nick Ford, who said inflationary fears are likely to put a dampener on returns from further down the market-cap spectrum.
That said, Ford - who manages the portfolio alongside Hugh Grieves - said the fall in valuations has left him feeling like "a kid in a candy store", with many recent IPOs seeing share price pullbacks of between 30% and 50%. Avoiding the growth trap: Confronting the sanguine inflation consensus "I always like to be honest with people because our performance numbers are very transparent," he told Investment Week. "We did have a pullback in relative performance compared to the peer group from February this year. But given that we are investing on a three-to-five year view, we are...
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