US growth at state level is diverse and well-situated small-caps benefit far more than their larger peers. Robert Anstey, lead manager of Hermes' US SMID Equity fund, explains.
One of the joys of small- and mid-cap investing is that one can take advantage of a level of granularity denied to our large-cap peers. For instance, if you buy a large-cap US stock whose main market is the US, you are pretty much buying US Inc. Your US-wide stock gives you US-wide growth – the national average, in broad terms. By contrast, small- and mid-caps are often much more representative of – and conditioned by – the individual states within which they do business. It is as if you were offered the choice between a broad European index and the opportunity to move between, say, Germ...
To continue reading this article...
Join Professional Adviser for free
- 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