The illiquidity and low volatility of micro-cap stocks has helped managers at the very bottom of the cap scale dodge the impact of this year's rotation into larger companies, buyers suggest.
After a strong run of outperformance, mid- and small-cap indices fell sharply in March as investors cut momentum trades in favour of mega-cap names. That trend has subsequently moderated, but the FTSE 250 remains down 1% year to date while the FTSE 100 is up 1.3% over the same period. However, at the smaller end of the market, the FTSE Small-Cap index is up 0.7% while the FTSE FIedgling index, which holds companies outside of the All Share, is up 8.8%. As a result, small-cap managers who have invested at this end of the market have seen their funds outperform, while those with a mid-c...
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