Where is the best value: Large, mid, or small caps?

Rob Radelaar, head of core equity & senior portfolio manager, European equities, ING IM   Large-cap financials There are three reasons to prefer large-cap stocks at this point in time. Firstly, after 14 years of almost uninterrupted outperformance of small and mid caps, the undervaluation of large-cap stocks in Europe is at its most extreme in over two decades. Secondly, in the initial phases of the market cycle, small and mid caps of lower quality typically lead the way while, in the more advanced stages of the cycle, investor preference tends to shift towards large-caps sto...