Small- and mid-cap run could end as UK All Cos managers warn of turning point

Top performers reap rewards from mid and smallcaps, as they outstrip larger peers

Since markets began their recovery, leadership in the UK equity market has been dominated by cyclical companies. These have been powered by higher corporate earnings generated by rapidly improving global growth, with internationally focussed business in particular doing well. However, the market is now at an inflection point, with UK All Companies managers heading in three different directions: some are sticking with cyclicals in spite of their higher prices, others are targeting unloved recovery stocks and some are moving to traditional defensives. Mid and small cap Funds investin...