IE Conjecture podcast: Discussing Small Caps
InvestmentEurope’s latest Conjecture on Small Caps is available on demand.
Small cap investing has continued its evolution from niche following to becoming a mainstream asset applicable to all sectors.
One of today’s biggest companies by market capitalisation, Apple, was a distressed small cap in the 1990s, which has rewarded investors handsomely. But there are other reasons to consider smaller companies, such as the diversification they may provide against big cap volatility, especially in markets where the larger end of the capitalisation spectrum is dominated by just a few industries. And the relative lack of coverage of small caps gives rise to greater opportunities for information advantages, which theoretically benefits active fund managers.