Fund managers Simon Evan-Cook and Stuart Widdowson discuss whether small-cap companies are poised for a recovery after years of underperformance.
Key facts
- •Small-cap stocks have underperformed compared to US megacaps in recent years.
- •Simon Evan-Cook is a fund manager at Downing.
- •Stuart Widdowson is a fund manager at Odyssean Capital.
- •Analysts are considering if small-cap value can serve as an anti-AI trade.
Small-cap stocks have faced years of being overshadowed by US megacaps and the artificial intelligence sector. Fund managers Simon Evan-Cook of Downing and Stuart Widdowson of Odyssean Capital are now examining the potential for a market comeback for these smaller companies.
Current Market Valuation
According to fund managers Simon Evan-Cook and Stuart Widdowson, small-cap stocks currently remain unusually cheap. The discussion centers on what factors could encourage investors to return to this segment of the market.
Small-Cap Value and AI
The analysts are evaluating whether small-cap value stocks could emerge as an alternative investment strategy to the current artificial intelligence boom.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by Bloomberg Technology.
