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Pick small caps that "stick to what they're best at"

Fund managers at the fussier end of the stock-picking spectrum are rapidly losing their appetite for companies with high exposure to government spending. George Osborne's stomach churning austerity drive means it will dwindle until 2018 at the earliest. If invested in companies like these, investors hungry for returns may be in for a long wait before they see anything even close to exciting.

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By Katie Morley,
18 December 2012

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