Top Performing Australian Fund Finds Shelter in Small-Cap Stocks

Investors are overlooking the growth potential of small and mid-cap stocks worldwide, according to the Australian manager of a top-performing global equities fund.

So-called SMID-caps, or the bottom 28% of developed-market equities in MSCI’s investment universe, offer an attractive growth alternative to volatile emerging market shares and pricey, high-growth large-cap stocks, said Ned Bell, chief investment officer at Bell Asset Management Ltd. and manager of the Bell Global Emerging Companies Fund.