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In an environment of persistent earnings multiple expansion, investors have had to look hard to find quality value names. With confession season largely behind investors in Australia, some names in the Small Caps space have come out relatively unscathed and appear poised to meet guidance...

Structural Biases Many academic papers such Fama and French (1992) have identified that smaller companies outperform their large cap cousins over the long term. While locally it has been evident with the median Australian small cap manager returning 2.7%** more than the large cap median over...

It is conventional wisdom that the Australian share market is largely comprised of mature businesses with a particular emphasis on financials and resources.Happily, if you explore beyond the stocks covered by the larger brokers it becomes obvious that this is not the case and that...

Why have small caps been performing so strongly? Do you expect this to continue, and why?After several years of underperformance investors were initially attracted to the better valuations which were available in Small Caps.However more recently there has been a noticeable improvement in risk...

Recent broker reports have highlighted that the Australian Small Cap market is beginning to look stretched from a valuation perspective.The chart below tracks the average P/E ratio of the Small Cap market over time and clearly shows that it is currently at elevated levels. Forward P/E...