There are currently 18 or so investment trusts focusing on mid-cap, small-cap and fledgling companies. Simon Elliott, head of research at broker Winterflood, expects that figure to halve over the coming year, owing to illiquidity and investor apathy towards a sector that's generally posted poor returns in recent years.
However, there are some strong performers. Mr Eilliott picks out Harry Nimmo of Standard Life and Gervais Williams of Gartmore. Both look for small companies that can survive and thrive through hard times.
Mr Nimmo, for example, seeks companies with no debt, growing dividends and strong balance sheets, "stable, predictable and able to grow despite the economic cycle rather than because of it".
He likes online businesses ranging from clothing firm Asos to online antibody distributor Abcam (85 per cent of whose business is overseas), and also firms focused primarily on emerging markets, such as soap maker PZ Cussons, with a huge market in Nigeria, and Asia-focused Salamander Energy. Niche engineers and software companies able to sign up customers on long-term contracts are also important components of Mr Nimmo's portfolio.
Mr Williams is looking for "businesses able to expand in a flat UK economy" and those competing against US or European companies, which have been able to benefit from the weaker pound of the past two years.
The bottom line is that times remain tough for many consumer-focused small companies; but that canny stockpicking managers are nonetheless finding interesting stocks in good shape at very low prices. Particularly with large caps failing to deliver in terms of security or income, it seems commentators are recognising that this could be a good opportunity for lateral-thinking investors to return to the quirkier delights of smaller companies funds.
