Smaller companies hold the key

2003 was a good year for UK smaller companies. The UK Smaller Companies (as defined by the Hoare Govett Index ex Investment Trusts) had turned in a total return of +43% for 2003. Definitely a good result, however not as good as 1999 when the gain was +56%. We have been in a massive bear market for the last few years. The total return for the overall market over the last five years even after reinvesting dividends the return has been minus 5%. While the total return figure for smaller companies was + 51%. The 10 year numbers show a similar picture. Indeed, over one, five and 10 years, UK...