INDepth with Tim Snelgrove from Coaster Capital

Owning the largest stocks has historically been a recipe for underperformance over every period, according to value house Pzena, but the madness of benchmark construction means some investors have few choices but to.

The historic outperformance of big tech stocks in the US may look like a global outlier, but many developed markets (including ours) have high levels of concentration risk. That may not be the case for long, with a likely softening interest rate environment set to re-order indexes around the world.

A huge benefit has already been realised in the price of the Magnificent Seven and it might be time to take some risk off the table instead of speculating on future fundamentals, according to Lazard.