Small and mid-cap stocks in Europe have endured a torrid time in recent memory with attention and flows focusing on the larger end of the market but with cyclical tailwinds emerging but it may be time to redress this imbalance, according to Baillie Gifford.
Speaking at the latest of Professional Adviser's Digital Working Lunches, Baillie Gifford European fund investment specialist manager Thomas Hodges explored how advisers can use this opportunity to allocate towards structural potential winners lower down the cap spectrum. Hodges said it had been a "really rough time" to be invested in smaller companies globally over the past few years. The investment specialist explained that looking back over the past 20 years it was "almost an unwritten rule that small caps would outperform". However, since 2021 large caps started to outperform thei...
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