Unicorn's Mackersie backs internationally-focused small and mid caps

Helped by weaker sterling

The performance of UK small and mid caps suffered significantly in the immediate aftermath of the UK referendum in June last year.

Companies with significant domestic earnings or exposure to the UK consumer were hit particularly hard.   This was in stark contrast to the performance of the more internationally-focused larger quoted companies - which held up well initially following the vote, benefitting from favourable currency conditions and a strong recovery in the commodity sectors. Where are the best opportunities for small-cap managers globally? Portfolios with a bias towards small- and mid-cap stocks were hit by this sharp shift in sentiment. The IA UK Equity Income sector, in contrast, has a strong bias ...