Darius McDermott: Darkest before dawn for UK small caps?

UK small caps

clock • 5 min read

Now may not be the time to go heavily into UK small caps, but dipping your toe in the water with a long-term time horizon is by no means a silly notion, writes Darius McDermott

Fool me once, shame on you; fool me twice, shame on me. The old saying comes to mind when I think about UK smaller companies at present, because we, as investors, often panic and forget that these companies have consistently proven their ability to outperform over the longer term. I've been on something of a whistle-stop tour of managers in this asset class in the past few weeks and the impression I get is that although out of favour, many managers believe there is now an opportunity based on historic and relative valuation metrics. Year-to-date UK small-caps are down 17%, accordin...

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