What is your small cap portfolio and how do we access the information
A quick look through the Credit Suisse market darling list shows that the current market darlings weren't previously cheap undervalued stocks trading at a discount to market who were re-rated. They were always expensive, quality businesses with great profitability and earnings potential who managed to execute on their growth plans. So I'd suggest that looking for the next set of market darlings should be done by looking for high quality businesses rather than cheap businesses. Targeting unloved value plays for a cyclical turnaround or a leveraged trade is a completely different investment strategy.
As always, great read Andrew!