Asset Allocators' Soapbox: When small is beautiful

The debate over the 'size effect' in the global equity fund space has resurfaced in recent weeks, as talk of over-concentration in large cap equity funds prompts investors to think about options further down the market cap scale. The underperformance of small caps versus large caps over the past year also presents an attractive opportunity for entry into this part of the market. But before taking the plunge into small cap funds, it is important to understand what really drives their performance.  Stocks of smaller companies are more volatile than those of larger businesses, which can ...