Little gems: what are the attractions of small caps?

In the 1990s, the small company arena could readily have been described as a very under-researched and under-broked area of the market, therefore offering great inefficiencies and many undiscovered gems if you were prepared to carry out a little bit of groundwork. Additionally, small company stocks were previously very domestically exposed and were highly dependant on the outlook for the UK economy. The landscape has changed markedly during the noughties. While there are still undiscovered gems, particularly at the micro cap end of the market, it could in fact now be argued that the r...