Stockpicking key to smaller companies' success

US, Japan and European small-cap sectors are all topped by funds overweight in industrials financials and consumer discretionary stocks

The top smaller companies' funds investing in Europe, the US and Japan have all benefited from major positions in industrials, financial and consumer discretionary stocks in recent years. Stockpicking is clearly key in smaller-company markets, as seen by the massive performance disparity between the top and bottom funds in all three sectors. Over the three years to end July, JPMorgan's European Smaller Companies fund was the top performer in its 14-strong peer group, recording bid-to-bid growth of 161.72% against the average of 132.34%, according to Morningstar. Run by Jim Campbell and F...