Microcap investing has historically seen less demand due to its lower capacity and lack of natural style box. However, investors are warming to the benefits of microcap, in particular its higher return potential paired with multiple benefits in an asset allocation framework. We believe microcap has a compelling value proposition, and investors interested in the space would be well suited to consider key questions in picking a manager. In this paper, we discuss the main arguments for microcap investing as well as our preferred approach. In addition, we cover the key concepts to consider when selecting microcap managers.
Thomas Lettenberger, CFA, Portfolio Manager, Disciplined Equities; David Corris, CFA, Portfolio Manager, Disciplined Equities; Christopher Jenks, CFA, Client Portfolio Manager, Disciplined Equities
By downloading a white paper, you are agreeing to have your contact information shared with the content sponsor, who may then contact you.
All white papers posted were created by the listed authors who are solely responsible for the research, finding and all materials contained therein. Pensions & Investments has not verified or edited the materials (other than for length and style) and does not necessarily agree or disagree with the analysis and positions expressed by the authors. Reference to any company, product or service does not imply recommendation or sponsorship by Pensions & Investments.
For more information on submitting a white paper, please contact Richard Scanlon at email@example.com or 212-210-0157.