Small- and mid-cap companies are still likely to outperform big-caps this year, although the outperformance will not be as great as in 2003, says Neil Pegrum, Insight Investment director UK Equities.
This means there will be no "easy pickings" for those who last year could have chosen just about any FTSE 250 firm and still come in ahead of those restricting their choices to the 100 biggest companies. Pegrum's bottom-up approach to stock-picking means he is still looking at big-caps, of course, and he currently sees some good opportunities there too. "I’m positive on the water review," he says, explaining why he believes the market is currently undervaluing water companies. The review involves the government and industry negotiating long-term water prices, but Pegrum’s view is th...
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