Gartmore predicts strong UK small caps rally

The Growth Opportunities manager says as we continue to see earnings downgrades many stocks will see recovery buyers and fewer sellers. "The patient is alive. Many of the stocks we are looking at could double from here and still look undervalued in terms of their future earnings," says Gervais. Sectors currently under-owned by investors are expected to be among those that recover the most, says Williams. He cites his increased exposure to small-cap oil stocks as an example, which he raised after he saw valuations reaching overly depressed levels. "Already, we have seen oil bouncing str...