Williams employs a bottom-up stock selection approach. However, speaking with Expert Investor Europe magazine editor Dylan Emery at Expert Investor Switzerland, he noted that some small cap sectors are better-placed than others to benefit from continued improvement in the region.
“If the European economy carries on recovering, then areas associated with consumer spending may still be significantly undervalued,” Williams said. “I would also think that the financial services industry – and maybe even, later in the cycle, the construction sector – will provide opportunities.”
Nevertheless, firms which postponed investment during the crisis should be avoided. “You have to be very discerning, to identify which companies are in a fit state to grow profits,” he added.