Van Lanschot Kempen’s latest Market Musings highlights how market concentration is masking a broader shift beneath the surface, with small caps showing renewed relevance for diversified portfolios.
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The MSCI World’s top ten holdings at 27.5% of index weight, versus just 2.4% in small caps—an imbalance that has historically preceded leadership rotation.
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Small caps trading below long-term valuation ranges across regions, with Europe showing the widest discount.
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Historical patterns on page 2–3 point to strong small-cap recoveries following downturns, especially when starting from undervalued levels.
For a fuller look at where breadth may reassert itself—and how small caps can anchor resilience—the complete report offers deeper evidence and context.
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