“In the last few years, the biggest gains have been made by mid- and small-cap companies, or the bottom end of the FTSE 100 (INDEXFTSE:UKX). The mega caps have been ignored – they are the elephants in the room, the cheapest part of the market,” says Chris White, fund manager of the Premier Income and Monthly Income Funds in an interview.
That may be a U.K.-specific comment, but could it apply globally?
Phillip Saunders, manager at the Investec Diversified Growth Fund, disagrees, saying that while some of these mega-caps could outperform, many others will ‘languish’ and that as a sector, mega-caps will underperform relative to small-caps, mid-caps and even companies which are large, but not ‘mega’.
Do the ‘elephants’...
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