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The advantages of small caps

Small-cap stocks offer more opportunities than ever before, argue ALEC HARPER, MATHIEU L'HOIR and MAGUY MacDONALD

Seizing the opportunity: Whiting Petroleum (above) is an example of a small cap that has profited from disruptive technologies. A first-mover in the Bakken basin/ Three Forks area - a rich shale oil and gas basin - the firm applied its innovative methods and a willingness to lead in critical midstream elements like processing to move ahead of the pack. - PHOTO: BLOOMBERG

HISTORICALLY since 1975, small-cap equities have outperformed large-cap equities by an average of 4 per cent in years of GDP expansion, according to MSCI data. In line with our expectation that the global economy will accelerate in 2014, we are convinced that smaller companies will be the...

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