Schroders favours small cap-led recovery

Schroder US manager Ira Unschuld is predicting small caps will lead the North America equity market recovery. Unschuld, who runs the group's US Smaller Companies unit trust, said small caps have significantly outperformed large caps over the past five recessions and he expects them to do so again. He said: 'My guess is that if we continue to come out of recession, smaller companies will lead the way and it will remain a stockpicking environment for the next six to nine months. 'If you get more stock specific in small caps, you can still find companies that have excellent growth prosp...