Legg Mason's George: small-caps will lead brief US-market rallies

Legg Mason US small-cap manager Whitney George said the sector will lead the world's biggest market d...

Legg Mason US small-cap manager Whitney George said the sector will lead the world’s biggest market during rallies but over the next year such rallies will be brief. He said there was a strong US small-cap rally in early Q2 before June’s bad news brought things back down to earth. George manages the group’s Dublin-domiciled Royce Smaller Companies fund and UK ICVC Legg Mason US Smaller Companies fund. “The June decline spoiled the party,” said the manager. “Year-to-date to the end of June 2008, the Russell 2000 was down 9.4% versus a loss of 11.9% for the S&P 500. “After outperform...