Are 'macro-agnostic' smaller companies the key to UK returns?

The Brexit vote, slowing global growth and unprecedented policy measures by central bankers mean there is significant uncertainty about what the future holds at a macroeconomic level - and there is good reason for investors to remain vigilant.

At an individual company level though, there are ample opportunities for experienced stockpickers to continue to identify businesses with growth potential not yet recognised by the wider market. In most cases, where a company had a strong fundamental story before the referendum, that still holds true today. A selective approach is required because quality stocks are on high ratings and there are often good reasons why other companies are on lower valuations. Broadly speaking though, loose monetary policy should positively impact equity markets and, in an extremely low interest rate...