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Small caps
Europe is widely regarded as one of the most inefficient developed markets , due to its patchwork nature and the dominance of old economy industries
0
– number of IA Japanese Smaller Companies funds that have underperformed their benchmark over 10 years
The exception to the rule Active outperformance is even more pronounced in Japan , where all six active funds in the IA Japanese
Smaller Companies sector have beaten the Russell / Nomura Small Cap index over 10 years . However , there is one anomaly . Europe is widely regarded as one of the most inefficient developed markets , due to its patchwork nature and the dominance of old economy industries . Even the large-cap focused IA Europe ex UK sector has beaten the most common benchmark used by its funds , the MSCI Europe ex UK index , over the long term . The conditions seem tailormade for an active small-cap fund to beat its benchmark . However , the MSCI
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