Small can be beautiful

If emerging markets have been geared to plays on developed markets, then emerging markets smaller co...

If emerging markets have been geared to plays on developed markets, then emerging markets smaller companies have been geared to their larger brethren. While the MSCI Emerging Markets Large Cap index has fallen by 54.3% in the 12 months to the end of October 2008 in US dollar terms, the smaller companies index has fallen by 61.8%. It is generally agreed that both emerging markets and smaller companies represent exciting, albeit volatile, asset classes. Put them together and you get something super exciting, but potentially super volatile. But do emerging markets smaller companies deserve t...