Bullish fund managers predict small-cap rally could hit 50%

Large-cap managers quick to buy into resurgent small-cap space to gain cheap valuations

The small-cap rally seen since March could go as high as 50% this year, according to Standard Life Investments' Harry Nimmo. The head of smaller companies at the group says the market has hit a turning point, which will drive their continued success throughout 2009. As downsized companies are clawing their way back up the scale in the recent rally, large-cap managers have been quick to buy into this rotation while valuations are cheap. "It means large-cap managers will start to dip down and want to get a hold of these distribution rights issues. It will just accentuate the smaller com...