Smaller companies are often overshadowed by their larger peers.
Size wise, smaller companies have typical market caps between $300 million to $3 billion, compared with the much higher capitalizations of a large-cap company.
Attention wise, larger and more established companies also capture the bulk of investor interest.
But it’s not always about what’s trending and what’s big. Sometimes, small can also make a sizable impact.
We believe small caps have influenced a significant amount of U.S. job growth in recent decades. Smaller companies can scale fast and have as much ability to be at the forefront of developing new and innovative products and solutions. Many U.S. smaller companies have historically had healthy earnings growth and have faced fewer headwinds from currency fluctuations because they are mostly domestic-based.
Smaller companies may not be as popular as large caps, but we believe they are worth our attention.