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Article: FUND FOCUS: Each-way bets with small stakes.
- Article from:
- Money Marketing
- Article date:
- May 22, 2008
CopyrightCOPYRIGHT 2008 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As most fund managers have moved up the market cap scale, UK smaller companies have gone out of vogue. Bigger companies generally have better valuations and a more difficult economic situation suggests a better picture for them.
However, while asset allocation can explain most of the profits from an investment, it can also explain most of the losses. The nature of small caps has changed for the better and they remain under-researched compared with their bigger counterparts.
Where some investors may be going wrong is in moving out of the sector lock, stock and barrel. This is not what most professionals do because they know there are always some ...