Fund manager's comment: Growth opportunities in small caps by John Hatherly

Sector rotation ensures that devotees of every investment style can share the limelight at some point in the economic cycle. The improving outlook for economic activity, coupled with diminishing aversion to risk has handed the lion share of the performance prizes so far this year to cyclical sectors, smallcaps and other value plays. In contrast, it was particularly striking that over the course of the latest quarter to 30 June the FTSE 350 Lower Yield index (usually a good proxy for growth stocks) suffered a 1% setback and that the three most highly rated sectors, pharmaceutical, support s...