UK large caps unconvincing

small and mid caps raced ahead in 2003 but falling dollar is not helping blue chips recover

UK blue-chip stocks may continue to struggle to outperform in the coming year, despite hopes that improving economic fundamentals would underpin a revival in the sector. Many commentators are calling for a large cap fight back and recommending FTSE tracker funds. But is that a good idea? Mark Tyndall, chief executive officer at Artemis Investment Management, said it had been a frustrating few months for asset managers focused on large cap stocks, as small and mid caps substantially outperformed the blue chips. "Price earnings are more similar now, with a noticeable discount for mid and s...