The ASX Small Ords has out-performed the All Ords by 10% over the past 2 years. Will this continue longer term? We think so based upon the 5 underlying drivers of this recent out-performance which we believe will remain in place looking forward. The increasing scarcity of under-valued assets across global financial markets means investors will need to become more creative if they are to achieve their desired investment returns in the coming years. As a result, smaller companies as an asset class is likely to become a more efficient market looking forward, which bodes well for performance. As always we advocate focusing upon finding under-valued high quality stocks with a long term perspective whilst ignoring the big picture noise.