Investors should increase their exposure to micro-caps over the next twelve months a survey carried out by small-cap investor MBH Corporation Plc (FRA:MBH) has suggested.
Frankfurt-listed MBH canvassed 117 professional investors following the good performance by small-cap indices over the past year.
Some 71% of those surveyed believe the trend will continue over the next six months with the lack of correlation with large companies something that is working in favour of micro caps.
Around three quarters (76%) of those questioned believed investors should increase their exposure here over the next six to 12 months, with 22% suggesting there should be a ‘significant’ shift.
Just 2% said investors should decrease their exposure to small and micro caps, said MBH.
Callum Laing, MBH’s chief executive, added: “We have seen first-hand, within our own portfolio, how smaller businesses have been able to successfully and profitably ride the storm of 2020.
“So we’re pleased that our research shows an increasing number of professional investors recognising the potential of small and micro-cap stocks.
“The Covid-19 crisis has made for a tough year for all businesses, and small businesses have not escaped unscathed. However, many small and micro caps have built up an excellent long-term track record of performance, and those investors that do increase their exposure here will find these stocks are typically nimbler and more resilient to changes in the market.”
MBH currently 21 small businesses in its portfolio.