US small caps outperform multi-nationals - Threadneedle

Richard Wilson, US equities fund manager, says the Russell 2000 index has moved ahead by 0.11%, in contrast to a fall of 10.3% by the S&P Composite index. "On the face of it, this outperformance of small caps seems anomalous given that their fortunes are so closely tied to the health of the US economy, which clearly remains under downward pressure,” he says. Wilson believes the credit crunch continues to make it challenging for smaller companies to secure funding to maintain their growth trajectory and raising capital in the financial markets has become more difficult. "In compari...