Rare bargains are emerging in micro cap stocks, according to JPMorgan European Fledgeling Investment Trust which has doubled its weighting in the sector this month.

The UK-listed closed-end fund has £265million assets under management. It has increased its weighting in micro cap stocks from 6% to 13%. Its decision to lift this weighting coincides with remarks by promoters of venture capital funds, such as Ted Mott, founder of Oxford Capital Partners, that opportunities in venture capital offer outstanding value. Lehman Brothers Holdings, which has filed for bankruptcy, is planning to spin off its venture capital arm as as viably standalone entity.