JOHCM's Beagles increases small-cap exposure to highest level since inception

'Parallel universe of valuations'

JO Hambro Capital Management's Clive Beagles has raised exposure to small caps on the £2.6bn UK Equity Income fund to its highest level since inception, describing the sector as a "parallel universe of valuations".

The manager (pictured) has increased exposure to smaller companies to 16.4% from a historic average of 10%, at the expense of mid caps, after adding to a number of existing stocks and making new purchases during recent market volatility, including constrution groups Morgan Sindall and U&I Builders, as well as van hire operator Northgate. "We have recently raised exposure to small caps, the highest the fund has had since inception. When we looked below the market cap of £400m-£500m we saw a parallel universe of valuations," he said. "There are lots of modestly-valued companies, with yi...