Funds seek value lower down market cap range

Insight Investments and Henderson Global Investors are identifying increased fund flows from large t...

Insight Investments and Henderson Global Investors are identifying increased fund flows from large to small-cap stocks. The European small-cap sector has a far higher market capitalisation limit than its UK counterpart. Aidan Farrell, manager of the Insight European Small Cap fund, believes the value of smaller-cap portfolios is catching up with that of large caps. As a consequence, many larger-cap funds are increasingly looking at the smaller companies sector, he says. Ben Yearsley, investment manager at Hargreaves Lansdown, agrees smaller companies are proving relatively attractive to l...