Small Caps – finding opportunities

We remain cautious on the outlook for the market given the macroeconomic backdrop is unconvincing. Putting that aside we are finding decent opportunities in the small cap space from a valuation perspective amongst companies that are unpopular due more to perception than reality. Most of these companies have strong balance sheets and a history of strong free cash flow generation that provides a lot of comfort they will be around in the long term. The optimal situation for us is when these companies have pragmatic management teams that you know are working hard for positive outcomes for their shareholder constituents. We remain wary of many of the market darling companies that are seemingly reliant on positive news flow to continue their share price success. Read further in "Small Talk: Imperfectly perfect" (VIEW LINK)