Some investors like the safety of big blue chip companies. Some prefer the potential of small companies. And then, there are investors who prefer somewhere in between.
For mid-sized companies, a good place to start tracking them could be the FTSE Mid-Cap Index.
Not too hot, not too cold
As of 30 November 2015, there were 49 constituents in the index. The best performers year to date (up till the end of November), are listed below:
- Neptune Orient Lines Ltd (SGX: N03)
- Biosensors International Group Ltd (SGX: B20)
- SATS Ltd (SGX: S58)
- Venture Corporation Ltd (SGX: V03)
- SIIC Environment Hldg Ltd (SGX: BHK)
Neptune Orient Lines or NOL, has been in the news lately due to a potential buyout offer. Shares of the shipping firm have been up 43.5% from the start of 2015 up till the end of November. In the last three years, though, NOL’s shares only returned 8.6% in total.
Medical devices maker Biosensors International is another outperformer this year, recording a return of 37.6%. Like NOL, though, Biosensors’ shares have not provided good returns over the past three years. The stock has fallen by more than a quarter over that time frame.
SATS bucks the trend here. Over the past three years, the catering giant has clocked in a very respectable total return of around 63.3%. The company’s shares are also up by 35.6% this year so far, on the back of higher earnings. SATS is also one of the newest component stocks for the Straits Times Index (SGX: ^STI).
Winning stocks can come in all shapes and sizes.
Whether your preference is a big blue chip company or a small company, what’s important is how the underlying business is doing. Furthermore, we have to make a judgement on whether its business can continue to perform over the long run. If it does, we may have found the next investment for our own portfolios.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.