The table shows the best performing stocks in Nigeria (Year to Date, May 2023), according to Nairametrics. What do you see? Any pattern? None that is very clear (except tech, agro and telecoms, most core sectors are largely represented from the mainboard). In other words, you cannot say this sector is outperforming which means a sector-based strategy would have missed many things. So, it comes to individual companies here, and how you’re able to pick them.
Contrast with the US where a playbook on semiconductors/microelectronics would have unlocked alpha, with Nvidia, AMD, etc leading the pack, on the wave of AI exuberance. If that is the case, a sector-based mutual fund/ETF strategy in Nigeria will underperform while in the US, you could pick some home runs.
The verdict: you need a different portfolio management strategy if you are investing in Nigeria from whatever you are doing in the US stock market. At Tekedia Capital, our members will be attending this FREE course (Venture Investing and Portfolio Management) on July 3-29 on click . Join us!
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