He said: "If you consider the number of small-cap companies compared to the number of mid- and large-cap companies listed on the stock exchange, and then compare the number of investment trusts covering each of those sectors, you could argue quite convincingly there is room for more players.
"The further down the size ladder you go, the greater potential for a skilled manager to find real pockets of value compared to large-cap stocks. There are far fewer closed-ended funds across all sectors compared to open-ended funds."
During his more than seven-year tenure as lead manager of GVQ's Strategic Equity Trust, Mr Widdowson delivered a strong performance for investors.
By the time he left in February last year, the investment trust had returned 174 per cent over the past five years.
eleanor.duncan@ft.com
