How the Brexit Vote Turned the Spotlight on Small-Cap Value
27 September 2016
It had been a tumultuous year for small- and mid-capitalisation (small- and mid-cap) stocks even before the United Kingdom’s vote in June to leave the European Union (EU). Volatility, reflected in investors’ preference for larger, more traditional defensive assets, intensified after the Brexit vote, but we think the sell-off has contributed to a valuation gap that could present opportunities in the small-cap space.