New issues market limits upside among small caps

Value stocks remain unattractive in the smaller companies arena with managers holding exposure to technology stocks. Correlation between the Nasdaq and smaller companies continues to be a problem. Share prices of many small caps, principally those associated with technology, continue to fall as investors sell on the back of US market volatility. During April the Nasdaq fell by 8.59%, in sterling terms, while the Easdaq fell by 8.14%. Yet despite this both Flemings and Baillie Gifford are not inclined to turn over their portfolios and invest in old economy stocks. The falling share prices...