The top 10 best performing investment funds in the decade since Lehman went bankrupt is dominated by players from small companies.
Tech, biotech and Japanese funds form the rest of the list, which you can find below. The best performing was Legg Mason Japan Equity, an increase of 720 percent, and the average growth in the entire top 10 was 516 percent.
By comparison, the FTSE 100 has returned 109 percent since September 2008.
FundExpert.co.uk boss Brian Dennehy, who compiled the top 10 list, admits that he would not have predicted that one of these sectors would do well when Lehman Brothers collapsed, one of the most fraught moments of the financial crisis.
Top 10 since Lehman: performance of the fund between September 15, 2008 and September 4, 2018 (Source FundExpert.co.uk)
September 2008 was a very uncomfortable time for investors in general and for those who were central to the investment business, as I was, & # 39; he says.
I would certainly not have thrown my money, or that of my customers, into smaller British companies, although I am normally a smaller company fan.
& # 39; After all, this is usually the largest risk area of the stock market and the most illiquid. And bank credit was drying up, a big problem for smaller companies.
& # 39; I also did not invest in technology funds. I, and our customers, had successfully bypassed them from 1999, after which they reached almost 90 percent.
& # 39; Japan? It was still far from its peak in 1989, and although I had been keen on Japanese funds, in September 2008 I did not have the strong tendency to invest in Japan. & # 39;
Dennehy says that the value of knowing the top 10 funds since the bust of Lehman is very limited because it relies afterwards.
& # 39; The answer is to have a process to select funds that you can apply at any time, regardless of the state of the market & # 39 ;, he says.
Lehman Brothers goes bankrupt: infamous collapse on 15 September 2018 is one of the most tense moments in the financial crisis.
He hovers a different approach: buy the three best-performing funds from the UK-funded universe over the last six months – all companies, share income and smaller companies – then view them every six months and switch to the latest with the best growth or & # 39; momentum & # 39; in the previous six months.
At the time of the collapse of Lehman, the three best-performing UK funds were Royal London UK Mid-Cap Growth, Barclays UK Equity Income and Investec UK Special Situations in the period of six months to September 15, 2008 – none of which is the cause was the ultimate top 10 best artists.
But Dennehy says that the Dynamic UK Portfolio, created from exchanging funds every six months in the way described above, would have returned 388 percent over the past decade, which compares favorably with the average of the top 10 funds.
& # 39; The lesson? Ensure a clear and repeatable investment process. Make sure there is long-term proof of success. Apply it with discipline. Make more money! & # 39; he decides.
Dynamic VK vs FTSE 100: performance between September 15, 2008 and September 4, 2018 (Source FundExpert.co.uk)