🔍 Equity Small Caps focuses on identifying investment opportunities in small-cap companies, regardless of their growth or quality profile.
📊 Small-cap companies represent 86% of the American listed investment universe, offering more opportunities than the 12-14% held by large and mega-cap stocks.
📉 Macro and micro conditions favor small caps, including potential interest rate cuts and reshoring trends.
🛡️ The fund invests significantly in special situations, such as restructurings, which are less correlated with the economic cycle.
@Javierlinares:
“If you take the entire universe of listed American investments, about 12 to 14% are large or mega-caps. The fund seeks opportunities, not focusing on whether a company is a growth or quality company, but rather on investment opportunities regardless of the type of company. There are currently macro and micro conditions that suggest this asset class can perform very well in the coming years. Small caps should be a winning asset compared to large companies, after more than two decades of underperformance. Macro factors include faster or slower interest rate cuts in the United States and Europe. Small caps are typically financed with variable rate credit lines, unlike large companies that fix their rates. The reshoring trend, where American companies are moving production from China to the United States, also benefits small-cap suppliers. The potential arrival of Trump and his protectionist policies, such as tariffs and tax cuts, further benefit small caps. Fundamental valuations are also compelling, with valuations at two-decade lows.”
Watch the exact part of the video where Quim talks about Equity Small Caps here:
View the video on YouTube.
Read more about Equity Small Caps and its investment strategies at the following link. BLOG.
