Ann: June 2024 Investment Update, page-9

I agree with your theory, but…… Usually the small and micro caps follow the large caps, but this hasn’t occurred for the last 3 years… (and I know having invested in small cap managers over the last 3 years.). Small cap funds traditionally follow on late in the cycle after the large caps have had their run and it’s a measure of the manager as to how they perform over periods like this. I have previously been a fan of Wilson funds, being in WAM due to their takeover of Westoz (WIC) who, under Dermot Woods performed brilliantly. Wilson’s, WAM and as per your example of the leading large caps (who are very much inside the largest 300) WLE, have NOT performed well and are very much subject to investor confidence, which as you would have observed is very much lacking. Have a look at VAS, the Vanguard ETF which tracks the top 300 and see which one performed. VAS since Sept 21 has remained fairly stable and is pretty much on a par to where it started. WAM on the other hand has fallen significantly from approx $2.21 to near $1.50 despite them being managed and having analysts “targeting” and “picking stocks for their qualities and potential and supposed ly adding value. In fact their talents have only let to wealth destruction. As I stated, I was previously a fan of Geoff and the team, but something has gone “wrong” or to be kinder “not right” and needs to be fixed. Your arguement May be valid, but have a look at WLE (that’s the “leaders” you were saying outperform followed by the ex 300 stocks) and WLE has been a significant underperformer. Buy with your ears pinned back, hopefully you will be one of the buyers that will push the SP higher so that like minded individuals like me can exit at higher prices…. Oh and while you’re at it, pick up some WLE and raise the price for that. Caveat Emptor !