Too early to disregard the goliaths

Fund manager's comment

Don't give up on the FTSE 100 goliaths yet. They can come back with a vengeance. This year's rally h...

Don't give up on the FTSE 100 goliaths yet. They can come back with a vengeance. This year's rally has been the preserve of mid and small companies. The minor indices have surged ahead over 30% in the year to date leaving the main market FTSE 100 languishing with a measly 10% gain. The arguments for this divergence have been well-aired: small companies have greater economic sensitivity, they are more operationally and financially geared and low liquidity means that any buying has a disproportionate effect on share prices. But consider who has been buying. The big institutional players h...