After a decade of underperformance, small-caps are sharply coming back into focus as a number of supportive tailwinds emerge, writes Daniel Nilsson
The idea Generally speaking, UK investors are under-allocated to smaller companies compared to global peers. Several factors contribute to this, including the move towards a global indexation of equity portfolios, which has been a priority for many UK investors and the general outperformance of passive investing. However, tied to the ever-increasing concentration of mega-caps in market-cap-weighted indices, we see a strong opportunity to diversify our large-cap exposures with a dedicated small-cap allocation. In addition, from a diversification perspective, we are encouraged by t...
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