Signs that a months-long rally at the top end of the ASX is losing steam have several Australian fund managers betting that a small-cap bull market is emerging after years of underperformance.

That’s after the S&P/ASX 200 Index snapped a five-month winning streak in October, declining 1.3 per cent. Morgan Stanley equity strategist Chris Nicol said the market’s rotation into mining stocks lost momentum towards the end of the month, dragging the local bourse lower.