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Research gap sees opportunities abound in Microcaps

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The vast majority of stocks in the Australian microcap equities market are still lacking in formal coverage by brokers and analysts, leaving vast opportunities for value investors to uncover hidden gems in the sector.
That is the view of leading equities manager Perennial Value, whose Microcap Opportunities Trust recently marked its one year anniversary by delivering 50.0% (net of all fees) compared to a 22.4% return for the S&P ASX Small Ordinaries benchmark over the same period.  Perennial Value managing director John Murray said the firm’s disciplined value approach was working in investors’ favour given the under-researched nature of the microcap universe.