Often overlooked by investors, the North American Smaller Companies sector provides a compelling way to play the US economic recovery. Charles Younes examines its potential
The IMA North American Smaller Companies sector is relatively unknown, containing just 11 funds, with a combined value of £3.5bn. Unsurprisingly, the median fund size in the sector is £100m. Nevertheless, its largest fund, Legg Mason Royce US Small Cap Opportunity, is a hefty £1.5bn in size. Not only has the sector failed to attract investors, it has also failed to lure the best fund managers. There is only one FE Alpha Manager rated in the sector: Jenny Jones, at Schroders. Despite this, we believe there are reasons to be interested in the sector. First, it can be seen as a pure pl...
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