Smaller companies often get neglected by investors, dazzled by the big names and big dividend payers, but during the pandemic, this should not necessarily be the case.
There is a good argument for taking a closer look at investing in smaller companies as many of these are in a much better position to move quickly and position themselves for a new future, without the legacy of a large business.
Many of them may not have the deep pockets of a larger company, but money is available - and cheap - and so this makes this recession unlike the Great Financial Crisis, in this respect.
Many smaller companies innovate and take a longer term view on the future, speculating on where society might go, and innovating accordingly. This makes small cap stocks more attractive for investors.
In this report, we look at some of the factors driving performance in smaller companies, and how investors should consider them when looking for investment opportunities.
