How do small-cap trusts' risk-adjusted returns compare with open-ended funds?

Kepler Partners' analysis of more than 280 funds reveals why even the most concentrated of small- and micro-cap focused trusts have superior risk/return characteristics.

Smaller companies have performed well over the long term, but less well known is their risk-adjusted returns are also significantly better than their large-cap counterparts. The extent to which they have outperformed their larger peers is considerable.   Since 1955, the Numis Smaller Companies index has delivered annualised compound returns of 15.4%. This is 3.6% above the FTSE All Share. Research by Numis suggests during the period from 2000 until 2015, smaller companies outperformed large caps in 90% of world markets. More remarkable is the fact smaller companies - when combined ...