All Small cap articles
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White papersJapan: Unlocking Hidden Value Through Engagement
Reforms could continue to drive performance, particularly in a small to midcap space that is ripe for engagement-driven capital efficiency gains.
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White papersEquity markets frustrate both bulls and bears
Despite some wavering in May, global equity markets have generally remained resilient year-to-date. Most major indexes have held on to gains made in the first quarter of 2023, when markets overcame volatility driven by bank failures in the U.S. and Europe.
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VideoAn Active Approach to Navigate Noisy Markets
In today’s market, we believe it’s essential to take an active approach—looking at each company one by one and understanding their unique set of circumstances and conditions.
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VideoSilver Linings: Companies with a Playbook for Tough Times
A common general impression is that small-cap companies are of lower quality. It’s a well-founded assumption if you look at the Russell 2000 Growth Index. Fifty percent of those businesses are not generating free cash flow (FCF). The index tends to be highly levered, and the return on invested capital (ROIC) is lower.
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White papersIs now the time to consider allocating to US small- and mid-cap growth stocks?
Small- and mid-cap growth indexes today paint a compelling picture. Historically, small- and mid-cap growth equities have demonstrated return potential following bear market periods.
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White papersAre US small caps ready for the handoff from bear to bull?
Royce Investment Partners: Current fundamentals and history may be signaling a small-cap run.
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White papersThe illiquidity premium in private asset markets
Investing in private assets can lead to higher returns when compared to public markets, at least over the longer term. In this last of our three-part overview* on private asset investing drawn from our recent paper, we look at how private asset outperformance – the illiquidity premium – can be seen as compensating investors for their willingness to lock up capital for five to 15 years, the usual lifecycle of private equity and private debt investments.
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White papersConcentration Consternation
The widening representation of large U.S. stocks in large-cap benchmarks has reduced the benchmarks’ diversification benefit. Investors may want to diversify and seek outperformance by allocating to mid- and small-caps.
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VideoMegatrends – Small Cap
(2:08) Client Portfolio Manager, Nicole Vettise examines why small caps present an opportunity for equity investors in today’s environment.
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White papersOverlooked in the U.S.: International Small Caps
International small caps are underrepresented in most U.S. investors’ portfolios. Boosting allocations to this asset class provides the potential for more diversification and improved risk-adjusted returns.
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White papersPrivate Equity Valuations Withstand the Volatility of 2022
We see valuation data from more than 400 funds each quarter, and it suggests the recovery from a relatively shallow downturn may be underway for buyout funds.
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White papersIndian assets are poised for growth in investors’ portfolios
Investors’ attention should be turning to India, which has overtaken China as the world’s most populous country. The country has a lot more going for it than just demographics. We expect GDP growth will average 5.2% per year over the next decade, compared with 3.7% for emerging economies, and a modest 1% for developed markets.
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White papersGo Time? The Case for Small-Cap Value
This paper reviews the strategic importance of U.S. small-cap value equities for capital accumulation. We explore the historical record for allocations surrounding recessions and offer insight on relative valuations.
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White papersEconomic and Market Review: Continue to Recommend Defensive Positioning, Focus on Quality
What happens when the lowest interest rates in 400 years meet the fastest hikes in 100?
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PodcastCan Periods of Turmoil Yield Long-Term Opportunities?
The banking sector, current markets, and long-term opportunities in growth stocks are topics of discussion between Tom Ognar, senior portfolio manager and managing director of the Dynamic Growth Equity team, and Jon Lagerstedt, director of Internal Sales at Allspring.
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White papersEquity Diversification in Europe’s DC Market
We explain why global small-cap equities provide strong potential to enhance equity diversification and excess return in European DC markets, especially for active managers.
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White papersAn entry point for sustainable SMID caps?
Policies aiming to drive investment in the sustainability transition and adapt to the post-pandemic business environment are generating opportunities for small- and mid-cap firms (SMID caps), which our Natural Capital strategy focuses on.
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White papersWhy the next five years belongs to US SMID
The Equities team explain why, against a backdrop where the US economy is likely to ‘muddle through’, there are exciting investment opportunities in the US SMID space.
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White papersJapanese Small Caps May Hop in the Year of the Rabbit
Despite their recent outperformance, we believe Japanese small caps have further room to run in 2023 and beyond. In this report, we highlight a few catalysts that could support earnings growth within this relatively under-researched asset class.
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VideoSmall Caps: Why Active Management Matters
The size and diversity of the small-cap universe, combined with a lack of sell-side research, presents a compelling opportunity for active managers with strong, bottom-up stock selection capabilities.
