Are small caps a better bet than private equity?
Investors have ditched ‘unloved’ smaller companies for private equity or bond proxies.
High profile fund managers and buyers have questioned why some multi-asset funds have up to 20% in private equity in order to diversify portfolios when better value appears to exist at the bottom end of public markets.
Speaking at a recent Merian Global Investors media event, BMO Gam co-head of multi-manager Gary Potter said investors should look at the quantity of private, less liquid assets they have in a portfolio because some private equity investors are fishing in the bottom end of the public markets where there is better value in terms of stock prices.
