Manduca remains bullish on small caps, despite widespread de-rating

UBS manager acknowledges small-cap demand is waning after strong run, but highlights major opportunities as long as market avoids recession

UBS's UK Smaller Companies mandate remains a pack leader for long-term results despite the recent UK small-cap meltdown. Since its 2003 launch, the fund has shared the upper reaches of the UK Smaller Companies peer group with such notables as Omam's Dan Nickols and Merril Lynch's Richard Plackett. The vehicle, which will celebrate its fifth birthday at the end of the month, reports a top-decile result since launch. But its performance for one year to January is now third-quartile, a drop from its second-quartile position over 12 months to July 2007. The manager remains confident his...