Reshoring and Deglobalization
With the acceleration of both reshoring and deglobalization, the potential benefits from underinvestment in capital, the Inflation Reduction Act, the Infrastructure Investment and Jobs Act, and the Chips Act should be long-term secular demand drivers.
Small Cap Stocks Appear Cheap
Relative to the largest 1000 companies, smaller companies are trading at a meaningful 20% discount to historical averages
Inflation Has Historically Favored Small Caps
The current inflationary environment has allowed some small cap companies greater pricing power, allowing them to pass on higher costs like wages and input costs to customers. This dynamic has not been seen for 40 years.
Why Rockefeller Asset Management?
For More Information
Investing involves risk, including risk of loss. Small capitalization stocks generally involve higher risks in some respects than do investments in stocks of larger companies and may be more volatile. Rockefeller Capital Management is the marketing name for Rockefeller Capital Management L.P. and its affiliates. Investment advisory, asset management and fiduciary activities are performed by the following affiliates of Rockefeller Capital Management: Rockefeller & Co. LLC, Rockefeller Trust Company, N.A. and The Rockefeller Trust Company (Delaware), as the case may be. Rockefeller Asset Management is a division of Rockefeller & Co. LLC and the “Firm” for purposes of the Global Investment Performance Standards (“GIPS®”). Rockefeller Asset Management has been independently verified for the period January 1, 2006 through December 31, 2022. Effective January 1, 2018, the Firm was redefined to include the management of fixed income strategies for periods dating back to January 1, 2012. A complete list and description of the firm’s composites and/or a presentation that adheres to the GIPS standards is available upon request.