How the US domestic recovery is fostering small-cap innovation - regardless of presidential politics

Following a volatile few months, four fund managers discuss their outlook for small caps in the US and the UK, and where they believe the best sources of growth will be in 2016.

Mark Sherlock, lead portfolio manager, US SMID fund, Hermes IM What is your outlook for US small- and mid-cap companies in 2016? It has been a volatile start to the year which has provided us with opportunities to invest in select companies at attractive prices. We expect our businesses to deliver robust growth in earnings going forward. The larger exposure of small- and mid-cap stocks to the US economic recovery, when compared with large caps, is beneficial in helping to drive these earnings. On valuation, smaller companies look the most attractive relative to large caps than they h...