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Steve Black, Portfolio Manager at the Pengana Emerging Companies Fund says “It’s always a good time to invest in small-caps” because that’s where you can find tomorrows leaders, generate significant alpha and actually diversify your portfolio. “The broader ASX200 is not a very well represented or diversified list of companies at all. Of the top 200 companies 30% of those stocks by market capitalisation are banks.” Of the top 10 stocks in the ASX200, they represent 50% of the market cap. If investors are looking for a broad diversification across both stock numbers and industry, they’re not getting it just by investing in the ASX200.”


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