Kepler Partners' Jean-Baptiste Andrieux: Why it might be time to look at US small-caps again

US small-cap companies have largely been overshadowed by their mega-cap peers over the past decade, but the US Federal Reserve's recent interest rate cut — and the possibility of further cuts — could provide a tailwind for US smaller companies, as they tend to benefit from lower borrowing costs and increased investor risk appetite. Since the turn of the millennium, the Russell 2000 — an index that tracks the performance of US small-cap stocks — has often outperformed the S&P 500 in the five years following the Fed's first rate cut (although past performance is no guide to future returns)...