Speculative small caps help some small cap funds shine

Managed funds that specialise in investing in small cap stocks produced uneven returns over the last quarter. Funds prepared to invest in speculative mining-related stocks without any revenues fared well, while more conservative funds backing real businesses fared less well. Colonial First State and Smallco Investment produced returns on in excess of four per cent for the December 2004 quarter, a period in which many similar funds reported negative returns for the quarter.