Small is bountiful

The year 2000 was a roller coaster for investors and a testing time for fund managers, who had their convictions and strategy tested to the limit. It turned out to be a story of two halves: the first characterised by the growing bubble of telecoms, media and technology stocks and the sell-off of old economy stocks. The second half was marked by a welcome return to a more balanced, rational investing environment. In the period from September 1999 to mid-March 2000, the market became almost obsessed with the telecoms, media and technology sectors and all but ignored any other businesses. Old...