Small caps enjoy solid performance

The FTSE 100 index represents close to 82% of the entire UK stock market, with the top 15 companies accounting for nearly 55%. These mega large-cap stocks are typically covered by upwards of 20 or more research analysts ' the share price generally reflects all the publicly available information and provides little opportunity for investors to outperform. Small cap companies are mainly under researched and as a result often undervalued. On a P/E basis, they represent better value than larger-cap stocks. The market cap split of some UK funds seems to provide the answer. For example, ABN...