Veteran small-cap manager Martin Ferguson, director and portfolio manager at Calgary-based Mawer Investment Management Ltd., says that there is considerable apathy towards small caps which is the result of the credit crisis, the slowdown in the United States and concerns about the resurgence of inflation.
"We have not seen this degree of indifference to small caps since the height of the tech bubble, when investors fled all other segments of the market to pile into tech stocks."
Canadian small caps have underperformed their big-cap counterparts for four years including 2007. "Year-to-date the underperformance has persisted," he says.
