Premier Miton's Gervais Williams: 'Lemming-like' beta-buying to lead to 'investment nightmare'

Mega-cap tech rush likened to 'FOMO'

It is almost certain that high-growth technology-focused stocks will experience a "2001-style" bubble burst in the near future as the market experiences a dramatic mean reversion away from high-beta stocks, according to Premier Miton's Gervais Williams, who said there are therefore "astonishing" opportunities available for UK equity investors looking to generate alpha.

Head of equities Williams, who co-manages the LF Miton UK Multi Cap Income and UK Smaller Companies funds, warned the "full blown mania" seen across markets over the past decade, and in particular year-to-date, is reminiscent of the 'Tulip Mania' seen in the 1600s, when the value of tulip bulbs relative to their asset price meant each sold for more than ten times the annual average salary, before collapsing. "Boy, are we in for an interesting period," the manager told Investment Week. "The nightmare for almost all asset allocators has been the strong performance of indices, which has led...