Thought Leadership

The Case for High Quality Small-Caps

  • Rockefeller Asset Management

In their paper “Against the Grain: The Case for High Quality Small Caps” Jason Kotik, CFA and Tim Skiendzielewski, CFA, portfolio managers for Rockefeller Asset Management’s small-cap platform discuss how small-cap stocks have taken a back seat to their large-cap counterparts for the better part of the last decade. But just as “growth” and “value” jockey for leadership positions, so too do small and large-caps. In our view, we’re at the tail end of the dominance for large-caps. As such, we believe long-term investors will be rewarded for going against the grain and increasing their allocation to small-cap stocks
instead of overweighting large-caps.

In this paper, Jason and Tim cover:

  • The drivers of recent large-cap outperformance
  • The three tailwinds they believe will reverse these trends in the near future
  • Why active management has the potential to add alpha in the small-cap space

More from the Small Cap Team

Webinar Replay: Is It Time to Go Big with US Small Caps

Jason and Tim recently hosted a webinar to share their views on the current state of small-caps, areas of the market where they are seeing opportunities, and their outlook for small-caps in 2024 and beyond. We invite you to watch the replay of this wide-ranging discussion.

Investing involves risk, including risk of loss. Past performance is no guarantee of future results. Small capitalization stocks generally involve higher risks in some respects than do investments in stocks of larger companies and may be more volatile.