Nickols keeps defensive stance on small caps

Old Mutual manager keeps his cautious position, expecting further post-credit crunch shocks, but is by no means bearish on the sector

Old Mutual's Dan Nickols is sticking to his defensive guns in anticipation of continued credit crunch aftershocks in the small-cap space. The manager of the group's flagship £428.7m UK Select Smaller Companies fund believes the small-cap space will remain a minefield for some time. "We have got to expect earnings to be downgraded even further over the coming months," he said. "There are still significant risks and we are a long way from understanding how they will be resolved. If the ongoing anecdote that we are halfway through the effects of the credit crunch is true, then there may ...