The investors getting set for an epic resurgence in small caps
Small cap stocks in Australia and elsewhere are trading at their lowest valuations relative to large caps in decades.
There's a lot of talk right now about bonds and rate hikes, but spend some time with investors and it's clear there's one part of the market flying well under the radar.
It is the down and out small end of town where fundies like portfolio manager Rob Forker see major opportunities.
Forker leads the small cap strategy at USD64 billion ($100 bilion) investment manager Polen Capital. He believes the market is a “coiled spring” ready to pop.
“The math is undeniable. We’re seeing a decades-low valuation relative to large cap indices and that’s not just in Australia, or the US. It’s everywhere,” Forker told Capital Brief.
