October 16, 2020
Investors who eschew small caps are missing out on valuable opportunities – particularly in the current environment, says GSFM’s CEO Damien McIntyre.
“Periods of underperformance for global small caps do coincide with recessionary environments, but small caps historically go on to experience meaningful outperformance in economic recoveries,” Mr McIntyre says.
“For instance between 2000 and 2006 small caps outperformed large caps by 200 percent. And between 2009 and 2014 they outperformed large caps by 35 percent.
“In fact, the MSCI World Small Cap index has outperformed the MSCI World index over the long term, with global small caps returning two times that of large caps over the past 20 years.
“This is a significant outperformance, and is an attractive option for long term investors.”