Neptune's Geffen warns 'free lunch' in mid and small caps is over

Large-cap bias boosted year-to-date performance

Robin Geffen, founder of Neptune Investment Management and manager of the group's £200m Income fund, has said the "free lunch" from UK small- and mid-cap stocks is over for the income sector, as he called upon asset allocators to reassess their exposure in this area.

The manager has said he has witnessed a turning point in markets that has led to just 10% of the IA UK Equity Income sector outperforming the FTSE All Share index year-to-date, as fund managers have been favouring companies further down the cap scale. Speaking at Neptune's annual conference, Geffen (pictured) said: "This is one of those significant moments when you want to let off a massive firework to let people know the game has changed substantially. Geffen: 'We may look back on 2016 as year investors should have bought EMs' "In the UK Equity Income sector, since the global fina...