If you believe that passive market flow is a permanent impediment to small-caps, the only way this gets unlocked for active is with: (1) buyouts; (2) dividends; or (3) up-listings. If I were a small-cap value investor, I'd be thinking very carefully about these three effects.
Jeremy Schwartz
Jeremy Schwartz1.8. klo 20.31
The small cap valuation discount to large caps has rarely been greater in last two decades. But what can unlock it? Eventual Fed cuts lowering borrowing costs + smaller companies leveraging AI and new tech for better margins, less hiring.
In category #3, by the way, is becoming a meme. If I'm an executive of one of these companies, I'm thinking very hard about how I can game my way into a mid-cap index as quickly as possible.
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