Smaller stocks, bigger returns

uk Growth

clock

With real volume growth proving elusive for FTSE 100 companies it is time managers looked for opportunities in smaller companies where active investors can make the best of a more discriminating market

FTSE index funds have been the big losers of the post-Iraq stock market rally. Over the past six months, smaller companies have dramatically outperformed the Mid 250, on average, and mid-cap stocks have beaten larger companies by a wide margin. Investors no longer need fear being underweight in the FTSE's biggest stocks. Stockpicking investment is back in favour. Once it could be argued that the UK's major global companies had a monopoly on the best management and business strategies. Now share performance and quality of leadership in sectors such as pharmaceuticals and oils seem to bear ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Deep Dive: US equities may not have peaked but do require greater selectivity

Deep Dive: US equities may not have peaked but do require greater selectivity

Amid equity rebalancing

Linus Uhlig
clock 13 June 2025 • 4 min read
Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Partner Insight: Robeco Emerging Markets Equities strategy - Targeting alpha in a new world of growth

Jan de Bruijn, Director, Emerging Market Equities, Robeco
clock 06 June 2025 • 5 min read
Nedgroup Investments' Rob Burdett: It is time to move underweight equities

Nedgroup Investments' Rob Burdett: It is time to move underweight equities

Reducing exposure

Rob Burdett
clock 03 June 2025 • 2 min read
Trustpilot