Richard Plackett plans to increase the BlackRock UK Special Situations fund’s small and mid-cap weightings after tactically adding to FTSE 100 companies in 2012.
Presenting at the Fund Strategy Investment Summit in Kitzbühel, Austria last week, the manager said he took profits in some of the £1.6bn portfolio’s small and mid-cap stocks last year and channelled the proceeds into large-caps in selected sectors.
The fund, which has to hold at least 50 per cent in small and mid-caps at all times, had 45 per cent allocated to FTSE 100 names at the end of 2012.
In the banking sector, Plackett bought HSBC, Standard Chartered, Lloyds and Barclays while Rio Tinto, BHP Billiton and Antofagasta were added in the mining space.
However, he no longer sees any compelling reasons for FTSE 100 names to outperform their smaller peers, unless investors become drastically “more worried about the world”.
He said: “The FTSE 100 weighting has been at the high end of where it has been historically so as we see opportunities in good small and mid-cap shares the chances are that will trickle down.”