Henderson backs small caps despite FTSE falls

Henderson has used the recent market weakness to refresh his portfolio with several undervalued smaller-cap names. He said: "The opportunities in small-caps are substantial and we need to use them by buying stock in a diverse selection of companies. I am using this period to refresh the portfolio with good value cash generative companies." In a weak environment for equities, smaller caps tend to take a greater hit than their larger counterparts, as they do not come with the same security as larger caps. There is a widely held belief that in volatile markets, larger-caps are 'safer' inve...