While equity markets globally have mostly celebrated the Trump rally, investors within Australian smaller and mid-cap growth companies have not felt so enthused. Continued fund flow rotation back towards larger cap Financials and Resources coupled with a weaker end to the AGM season has seen some fairly dramatic downgrades and weakened sentiment across the sector… With high quality businesses seeing a rapid PE compression, one also expects to see an accompanying demise in sentiment toward the space. Investor mindsets move away from dreaming about the upside and more toward “what can go wrong” with any slippage in reported earnings forecasts dramatically punished. This is a regular part of the Fear vs. Greed cycle and whilst sentiment is all pervasive, we remain acutely aware it can also just as easily turn on a dime. With prices 20 – 30% lower in some cases on no news, we’re genuinely excited by some of the opportunities currently on offer.