Small Is Not Beautiful

The empirical evidence that small-cap stocks do better than large-cap stocks is thin

Do smaller stocks do better than large-caps? Belief is widespread that they do. Mutual funds are bringing a plethora of schemes to buy mid-cap and small-cap stocks. DSP Merrill Lynch is even launching a scheme to invest in micro-caps. But James Montier, Global Equity Strategist of Dresdner Kleinwort has done...

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