Leading research house Lonsec says the plunging value of resource companies is now having a positive impact on the structure of the small cap market, despite being the major reason the sector has underperformed during recent years.
In its latest review of Small Companies, Lonsec says the small capitalisation market now offers much greater balance and diversity, than at the height of the resources bull market.
The fall from grace of many resource stocks has seen the small cap market reweighted to a broader range of companies.
Pleasingly the Lonsec small cap peer group performed strongly during 2014 by concentrating on stock selection in more buoyant sectors including healthcare, telecoms and consumer discretionary.
Source: Lonsec
