Why I'm backing small-cap companies

Interest in small-cap companies is currently low - perhaps unsurprising given Britain's poor economic outlook. But professional investor Ed Beal thinks that to overlook smaller companies' investment potential is to miss a trick. Here he explains why, and tips three firms he thinks have what it takes to deliver despite the challenging economic headwinds.

Each week, a professional investor tells MoneyWeek where they'd put their money now. This week: Ed Beal, manager, Dunedin Smaller Companies Investment Trust PLC, Aberdeen Asset Management.

Many investors regard smaller firms as a proxy for the performance of the British economy. Given the poor outlook for Britain, it is perhaps unsurprising that interest in smaller companies is currently low. However, investors may be overlooking three important points.

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Ed Beal is the manager at the Dunedin Smaller Companies Investment Trust. Ed has contributed to MoneyWeek in the past, giving his outlook on share tips.