Larcombe sees small caps as catalyst

Fund of investment trusts manager Derek Larcombe sees rising corporate activity as the catalyst for a market recovery. Larcombe who runs the Morgan Stanley Quilter Global Growth Fund, has been building up his exposure to global small caps, the area he believes is most likely to benefit from an upturn. He likens the current situation to that which followed the Asian financial crisis in 1998, when a number of trusts went to discounts of 30%-35%. At the time Larcombe built up an 18% exposure to Asian holdings in preparation for the bounceback that followed. Larcombe noted that at the end...