"So whereas the largest shareholders in a company such as Astra Zeneca would have been pension funds, it's now US value fund investors.
"And those US investors are comparing Astra, as a healthcare stock, with a US healthcare stock, and buying Astra because it is cheaper.
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"But as a UK equity manager I compare Astra with other UK equities, including small and mid cap equities, and on that basis I find the large caps quite expensive and so have been moving down the market cap scale.”
Abbie Glennie, who runs the Abrdn UK Smaller Companies Growth Trust said earnings forecasts for the small and mid cap part of the market were presently higher than for large caps in the UK.
David.Thorpe@ft.com
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