A sobering fact: 81% of ASX listed companies with a market cap below $100m are currently loss-making. And another: 90% of the same companies don’t pay a dividend. These are decisively low hit rates for investors focused upon predictable shareholder returns in stable business models. We believe knowing and understanding the smaller companies’ universe provides the keys to sorting the high quality companies from the lower quality, higher risk norm. In this article we identify 2 simple filtering steps to ensure your portfolio is only exposed to high quality smaller companies which are well placed to out-perform long term…