Small-Cap Activism vs. Large-Cap Activism [Part 1]

Small-Cap Activism vs. Large-Cap Activism - Part 1 by Troy Marchand, Foundry Capital

Over the next few weeks, I want to discuss my thoughts on why micro- and small-cap activism generate higher returns over time.  I view micro and small cap stocks to be a more inefficient asset class. Fewer analysts/investors researching small stocks, fewer dollars able to be invested, less Wall Street research coverage, and illiquidity cause more micro- and small-cap stocks to be mispriced, in my opinion. versus larger cap stocks. In the future, I will look to provide some research from academia to back up my hunch. I then want to combine micro- and small-cap investing with activism and see how the results compare versus larger cap companies.

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