Finding Global Small-Cap Opportunities in Uncertain Markets

By Trevor Gurwich & Jim Shore - September 2019

Key Takeaways

• Continued trade disputes between the U.S. and China, deceleration in corporate earnings growth rates and concerns that central bank policy is becoming less effective in spurring economic growth have all helped increase global stock market volatility.
• While no clear resolution of these issues is in sight, we believe global markets will increasingly differentiate between stocks based on company fundamentals. Companies with less exposure to global macroeconomic trends and those with strong, company-specific growth drivers may be better positioned to weather these market pressures.
• Our investment process is designed to help us uncover attractive opportunities regardless of short-term market conditions. We focus on identifying inflection points and companies with improving fundamentals. Quantitative screening, collaboration, the free exchange of ideas and insights, meetings with thousands of companies, and rigorous fundamental analysis help us identify opportunities and exploit inherent market inefficiencies.