FSGS - Disruptive Forces In Investing - Small Caps, Big Opportunities
2025-01-08 09:30:00 ET
Summary
- US small-cap equities are at a critical juncture. Valuation gap between small and large-cap stocks grown exponentially wide by historical measures but also numerous small-cap macro tailwinds appear to be gathering force.
- A lot of business optimism tends to really be one of the main drivers of small-cap revenue and cash flow.
- The leverage at the index level is about four turns of debt-to-EBITDA and it's all floating rate.
By Gregory G. Spiegel, Portfolio Manager
Anu Rajakumar chats with Greg Spiegel on the opportunities, risks and potential of this asset class
Anu Rajakumar: US small-cap equities are at a critical juncture. Not only has the valuation gap between small and large-cap stocks grown exponentially wide by historical measures but also numerous small-cap macro tailwinds appear to be gathering force. Small caps also span a vast range of characteristics and performance drivers that even seasoned investors may not fully appreciate. So how can experienced managers have the potential to exploit them in the new year?...
Disruptive Forces In Investing - Small Caps, Big Opportunities