Flight to large caps hitting Principle trust

The Principle Capital investment trust has suffered during volatile equity markets but benefited fro...

The Principle Capital investment trust has suffered during volatile equity markets but benefited from the realisation of its oldest and largest holding. The £68m vehicle, headed up by Brian Myerson, dropped -22.7% over the first half while the All-Share fell -13.1%. Myerson highlighted the flight from small-cap stocks to larger defensive holdings as a key reason for underperformance. "In times such as these when markets turn dramatically from optimism to pessimism, it tends to be the smaller capitalised stocks that are worst affected," he added. "While this has evidently impacted th...