Insights for professional investors
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Insights for professional investors
Beyond the heavyweights are the often-overlooked hidden gems, the Small Cap companies that have the potential to provide investors with substantial returns. Where are the opportunities and what should investors look out for? Three international investment experts will present interesting Small Cap strategies with a focus on Europe, Japan and the US.
Exclusively for institutional and professional investors from Germany, Austria and Switzerland.
All presentations will be held in English.
Thu, 1. June 2023
Start of event
Japanese small caps have underperformed large caps since 2018 and this is starting to reverse, with investors once again focusing on the attractive fundamentals. Cheap valuations, ongoing corporate reform, strong balance sheets, improving margins and the recent Tokyo Stock Exchange initiative are all very supportive. The sheer number of stocks and the lack of analyst coverage in the small cap space in Japan continues to provide opportunities to buy mispriced assets and a disciplined, repeatable, value-orientated investment approach makes the most sense to capture these.
Subdued returns both absolute, as well as relative to large cap companies, have left U.S. small caps, particularly value stocks, trading on historically low valuations at a time when macroeconomic conditions (higher inflation, normalization of interest rates) now appear more favorable to this asset class. The Royce US Small Cap Opportunity fund enables investors to capitalize on this compelling opportunity.
With 2022 being a year of significant underperformance of smaller companies against larger companies and a year of significant drawdown, what does 2023 hold for the asset class generally, and why does a tried and tested approach combining quantitative screening and fundamental analysis provide the best opportunity to add alpha in an asset which we believe will outperform larger companies over time.
Wrap up by moderator and end of event
Max Godwin joined Eastspring Investments, the Asian asset management business of Prudential plc, as Portfolio Manager, in February 2007. He is a Portfolio Manager of the Japan Equity team and is responsible for “Smaller Companies” strategies. Prior to joining Eastspring Investments, he worked at Pi Investments (HK) Limited as a Senior Analyst and Co-Portfolio Manager. He has 31 years of financial industry experience.
James J. Harvey is a Portfolio Manager, Principal for Royce Investment Partners. James Harvey manages portfolios in the firm's Small-Cap Opportunistic Value strategy, including Royce Opportunity Fund, an open-end mutual fund. He has 30 years of investment industry experience and joined Royce Investment Partners in 1998 as an Analyst.
Andrew Paisley is Head of Smaller Companies at abrdn. He is responsible for the management of abrdn’s European Smaller Companies strategy. As head of the team, he is also responsible for the management of the UK, Europe and Global Small Cap Teams and performance. Andrew joined abrdn in August 2014 as Deputy Head of Smaller Companies before being appointed Head of Smaller Companies in March 2020.
Thomas Schalow is the CEO of Capitalmarkets.net. He has over 25 years of experience in investment management, including various management roles at international investment firms. He publishes on financial topics and regularly moderates investment events.
