Mitchinson bullish on small caps despite dreadful year

JPMorgan's David Mitchinson remains bullish on Japanese smaller companies despite his growth style p...

JPMorgan’s David Mitchinson remains bullish on Japanese smaller companies despite his growth style particularly struggling in another ‘dreadful’ year for the sector. Over the year to 31 March, his Japanese Smaller Companies investment trust produced a total return on net assets of -28.1% against -19.1% from the benchmark. Mitchinson said already cheap valuations were compressed even further over the period but highlighted compelling market valuations. At the beginning of 2007, the TSE2 index was trading on a ratio of around 1.15x price to book ended the year at only 0.8x P/B. This c...