By David Smith, manager of Henderson High Income trust
What does a retailer, a bank and a tobacco company have in common? They all outperformed the magnificent seven over the past three years.
Yet if you asked most investors which stocks have stood out over that period, most would turn to the technology giants that have dominated markets returns thanks to a boom in artificial intelligence.
More traditional businesses often get overlooked, but these UK stocks have outpaced the magnificent seven, especially as interest rates have increased – and none of them are technology stocks.
They are more traditional businesses, yet the scale of outperformance has been significant. Private equity investor 3i, for example, has produced a 180% return since 31 December 2021 versus a 42.5% return from the magnificent seven.
See also: Who are the winners (and losers) of the FTSE 100?
Its share price has been driven by the success…
