Kabouter Management’s Nikhil Rastogi says there’s a ‘very high chance’ small caps will outperform other sectors because of high-quality companies persevering during tough times
Since 2022, global non-U.S. small-cap stocks have had a rough ride falling 7 per cent in 2022 and 11 per cent in the first half of 2023 compared with large-cap stocks. While this decline is historic, Nikhil Rastogi, a portfolio manager with Kabouter Management LLC, says the last time there was such a big drop, it was followed by a sharp rise.
Small caps underperform when the economic environment is challenged because small-cap companies tend to be less diversified in terms of exposure to different regions and products. Sometimes, they have too much dependency on one customer. When economic headwinds are high, like they are now, these companies see a bigger impact on their earnings. Also, investors also move capital to large caps from small caps because of perceived safety. These two factors lead to the underperformance of small caps.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Novartis names new board member after international boss steps downZURICH (Reuters) - Novartis has appointed AbbVie executive Patrick Horber to its executive committee, the Swiss pharmaceuticals maker said on ...
Read more »
International Bridge traffic up almost 50% in AugustWhile numbers are up, total crossings are still down 30% year-to-date when compared to pre-pandemic traffic volumes
Read more »
‘NCIS: Sydney’ Trailer: A New Taskforce Is Created To Stop High-Rising International TensionsFans of the 'NCIS' franchise better prepare to pack up and step foot onto a flight down under. The first-ever international spin-off of CBS' iconic 'NCIS' franchise is heading to one of the world's most recognizable and stunning harbour cities: Sydney, Australia. [readmore label='READ MORE: ' link='https://etcanada.com/news/994011/ll-cool-j-joins-ncis-hawaii-after-surprise-cameo-in-season-2-finale/' text='LL Cool J Joins ‘NCIS: Hawai’i’ After Surprise…
Read more »
Toronto International Film Festival kicks off amid actors and writers strikeThe Toronto International Film Festival kicks off today under the shadow of dual strikes by Hollywood writers and actors but festival CEO Cameron Bailey is touting a strong lineup and ticket sales.
Read more »
Toronto International Film Festival kicks off amid actors and writers strikeThe Toronto International Film Festival kicks off today under the shadow of dual strikes by Hollywood writers and actors but festival CEO Cameron Bailey is touting a strong lineup and ticket sales.
Read more »