JPMorgan European Fledgeling moves into micro caps

The JPMorgan European Fledgeling Investment Trust has doubled its weighting in micro cap stocks in the last two weeks.

The investment trust, which has £265million assets under management (as at 31 January 2009), has gone from a holding of 6% in micro cap stocks to 13% during February.

Jim Campbell, co-manager of the JPMorgan European Fledgeling Investment Trust said they have increased their exposure to micro cap stocks because of the excellent investment opportunities they are finding in this area.

The investment trust, which seeks capital growth from smaller European companies (excluding UK), has increased holdings in online gaming, real estate and support services e.g. cash handling within the micro cap area.

Speaking about micro cap opportunities Campbell said, "Through our stock selection process we are seeing a trend in micro caps across Europe with exceptional value. We do not looking for a sector bias but analysis shows that, in many cases, micro cap stocks are offering superior earnings momentum relative to the overall market."

Campbell went on to say, "We have a strong cash position in the portfolio which means we have been able to capitalise on these opportunities as soon as we find them."

The JPMorgan European Fledgeling Investment Trust's NAV has outperformed its benchmark by 10.1% over twelve months to end December. Over five years the Investment Trust's share price has appreciated 116.2% and the NAV returned 115.3%, whilst the benchmark has returned 52.5%.