Global Small Caps provide a rich source of idiosyncratic growth for global equity portfolios!
Despite the high certainty of global small caps out-performing global large caps (aka the ‘small cap effect’) over the long term, Australian institutional and wholesale investors have been reluctant to allocate equity capital outside the global large caps and global emerging markets. As a matter of fact, we find that there is a greater propensity to allocate capital to global private equity than to global small caps.
