Giles Hargreave believes smaller companies are enjoying a “honeymoon period” right now, though he recognises the rewarding thing about investing in small caps is that stocks can double in value in a day, or conversely, just as quickly sour, stinging performance.

The small-cap expert, who is also chief executive of stockbroker Hargreave Hale and manager of Marlborough Special Situations and UK Micro-Cap Growth funds, says: “Overall the current economic conditions are quite good. You might have to worry when the next government gets in. Taxes aren’t being increased and public sector cuts aren’t being made – but they will be and that will affect a lot of companies.”