Many have questioned whether Australian small caps will ever outperform again. We argue that now is the opportune time to allocate capital.
A lot of people, including on this platform, have started questioning whether Australian small caps will ever outperform again (which in our experience, is usually a good indicator of being at or near ‘the bottom’). When it comes to investor sentiment, it’s always darkest before the dawn.
We think that now is one of the best times to invest in smalls since the GFC.
In fact, we’ve launched our own fund – the Seneca Australian Small Companies Fund – to take advantage of what we believe will prove a fruitful period for active Aussie small-cap managers to outperform.