It’s an EM small-cap world, after all

If small-cap stocks tend to be overlooked, then the small-cap segment of emerging markets (EM) may feel particularly unloved. Risk-aware investors often focus on the higher end of the EM market cap spectrum, pigeonholing EM small-caps as too niche. As explored in this case for EM small-cap, investment opportunities can arise from market inefficiencies in this area, and misperceptions about EM small-cap equities can offer advantages for active equity managers.

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Investing involves risk, including the possible loss of principal.

The views expressed represent the Manager's assessment of the market environment as of May 2019, and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the Manager's views.

Past performance does not guarantee future results.

Diversification may not protect against market risk.

International investments entail risks not ordinarily associated with US investments including fluctuation in currency values, differences in accounting principles, or economic or political instability in other nations.

Investing in emerging markets can be riskier than investing in established foreign markets due to increased volatility and lower trading volume.

Investments in small and/or medium-sized companies typically exhibit greater risk and higher volatility than larger, more established companies.

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