Darius McDermott: Five of my favourite small cap funds
Small cap funds were not hit as hard last year as many think they were
The result has been that when stock markets around the globe finally capitulated to a correction at the end of 2018, the world’s smallest companies felt the impact more than their larger peers – but perhaps not as much as you may have expected. From 1 June 2018 (just after many developed market highs) to 21 January 2019, the average UK smaller companies fund was down just 2.5% in sterling terms more than the average UK All Companies fund, according to FE data. The gap was 3.5% for Japan and Europe about 4% for the US.
So have investors got it wrong? And is now a good time to invest, when everything is cheaper? Click through the slides above for five of my favourite developed market small-cap funds and some recent reflections from their managers.