Watch out AIM, the big institutions are getting involved again!
The financial crisis, post Lehman’s collapse, witnessed the panic selling of micro caps by large institutions. Many were forced to liquidate their portfolios with AIM bearing the brunt of this irrational selling. City institutions are once again falling over themselves to invest in microcaps...look out!
Having been largely absent from AIM for the past few years, it’s somewhat worrying to note that institutions are, one again jumping in wholeheartedly, seemingly recklessly throwing large sums of money at ipos and secondary placings and taking material takes in the tiddlers of the market. When institutions, or rather the inexperienced fund managers pressing the investment button, show such enthusiasm for micro caps it’s generally the time for private investors to get concerned. The former have little experience of the business world yet manage staggering sums of money, often viewing investment in a small micro -cap as a high…