Siddles: US small caps offer good hedge against CPI

F&C's Robert Siddles believes US small caps will act as good inflation hedge when CPI starts to rise.

The manager of the £28.1m US Smaller Companies Oeic and $97.8m US Smaller Companies Sicav says the sector is positioned well for a recovery. “If you believe inflation is returning, small caps are a very good inflation hedge,” he says. “When inflation returns nominal GDP growths tends to be quite fast and these companies are leveraged to grow. “Also, customers will expect prices to rise and smaller companies will benefit more in relative terms from these price rises.” Siddles says the strong performance of the market, which has seen the Russell 2000 return 37.82% over 12 months, ...