The Wild West of U.S. smallcaps

The past decade has been that of the big U.S. stock market companies. They not only outperformed stock markets in the rest of the world, but also outperformed their smaller counterparts, the smallcaps, domestically. Still, those U.S. smallcaps remain an interesting and underexposed hunting ground for investors, where many hidden gems can be found.

In recent months, it seems as if only seven stock market companies - aptly named the Magnificent Seven - still matter to investors. Those seven, not coincidentally all large Amerta tech companies, drew all the attention to themselves and made investors forget that there is still a whole range of small- and medium-sized U.S. stock market companies, the small- and mid-caps, where there are also a lot of opportunities to be had.

At the top of fund specialist Morningstar's list of the best performing funds in that segment is the American Small & Mid Caps fund of Ghent-based asset manager Value Square. It posted a 35 percent return last year. With this, the relatively small Belgian asset manager outperformed its world-class peers such as Schroders, Robeco and BlackRock. Trends spoke with, among others, Jens Verbrugge, the manager of the Value Square fund, about the opportunities and pitfalls in U.S. small- and mid-caps.

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You can read the full article via Trends: https://trends.knack.be/geld/beleggen-2/het-wilde-westen-van-de-smallcaps-de-kansen-in-kleine-amerikaanse-beursbedrijven/