How micro funds weathered the rotation into large caps

Laura Dew
clock

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment

Rising uncertainty and prices pushing investors to advisers

Rising uncertainty and prices pushing investors to advisers

Inflation is the top financial fear

Patrick Brusnahan
clock 10 June 2025 • 1 min read
Most investors say managers behind shy active ETFs 'mislead' the market

Most investors say managers behind shy active ETFs 'mislead' the market

2024 a record year for European ETFs

Patrick Brusnahan
clock 30 May 2025 • 1 min read
EquitiesFirst's James Mungovan: Time to let private credit fund public growth

EquitiesFirst's James Mungovan: Time to let private credit fund public growth

Escape from low-growth trap

James Mungovan
clock 28 May 2025 • 3 min read
Trustpilot