As the UK slowly emerges from recession, Joanna Faith finds out whether small caps are fair game once more...
Small cap stocks unsurprisingly took a battering in 2008 as risk appetite plummeted and liquidity constraints sent investors running to the supposedly safe arms of large caps. However, since the UK officially exited recession in January 2010, the FTSE Small Cap index has made a sterling recovery, returning 42% to the end of May 2011 versus the FTSE 100’s 26%. The outperformance of smaller companies is not surprising as historically they tend to perform most strongly coming out of recessionary periods. Peter Ewins, manager of the £252.1m F&C Global Smaller Companies fund, says: “As ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
