I recently read an interesting piece arguing that there is no value in small caps at the moment because in this space you are competing with the private equity guys and with their expertise they would have spotted the value already.
Would be interested to hear people's thoughts?
The immediate reaction is: surely as an individual investor I cannot compete with the instos and therefore want to be in small caps where liquidity/size restrictions etc keep the big players away. Furthermore, I want to be in those "dark corners" of the market where no one else is and mispricing abounds.
But what if small caps, on the whole, show little value at the moment? Does this change your strategy?