Fidelity: UK small caps look valuable again

An improving economic climate combined with a pick-up in corporate expenditure and increasing M&A activity, will have a positive impact on the sector, said Fidelity UK Opportunities fund manager Alex Wright. "As we move into an environment of greater certainty this should be good for small caps which have historically performed well in times of positive economic momentum," he said. Whilst Wright predicts GDP growth is likely to remain relatively low for some time, he said smaller companies are set to benefit as the country moves into a more stable economic environment and corporate ex...