Large-cap trend sees Jones raise cash to 9%

Schroders' Jenny Jones has increased cash in her £824m US Mid Cap fund to 9%, warning valuations in US markets are favouring large caps.

The group’s head of US small and mid cap equities said valuations on the Russell 2000 versus the Russell 1000 are pointing towards large caps at present, with smaller companies looking expensive in comparison. As a result, she has allowed cash to tick up from 7.8% as at the end of October. “Cash is not low, it is around 9%. There is a lot of worry out there and large caps, whose earnings have been stronger than expected, tend to do better in a downturn.” Jones, whose fund has outperformed all-comers in the US over the last five years, is holding cash back in the fund amid a decline...