Sector suffers as small-cap companies fall

Despite average three-year growth of 75%, smaller company funds dipped in 2006 as blue chips returned to favour

BY phil craig Offerings in the UK Smaller Companies sector have enjoyed a favourable background in recent times, growing by an average of more than 75% according to data from Standard and Poor's. However, performance dipped slightly in the final discrete year of the cumulative period as blue chips have begun to rise to prominence. The first year of the three saw average bid to bid growth of 21.24%, followed by 21.32% in the middle period and 19.08% in the 12 months to the end of January. According to Bambos Hambi, head of multi-manager at Gartmore, 2006 saw portfolios heavily weighted t...