Small Caps

In this interview, Richard Hemming and I discussed the promising landscape of small cap investments, highlighting the recent, strong performance of the Montgomery Small Companies Fund. I shared insights on the fund’s strategic positioning and optimistic outlook despite market volatility, emphasising an overweight in growth sectors like technology and consumer discretionary. I also discussed the potential for Australian tech firms and consumer retail strategies, explaining how the economic conditions influence market dynamics. continue…

by Roger Montgomery Posted in On the Internet, Small Caps.

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Roger joined Alec Renehan and Bryce Leske on the Equity Mates Investing Podcast to discuss his current view on the market and opportunities for small caps and private credit. This episode also covers what’s next for interest rates, why now is the time to deploy cash, Roger’s investment philosophy and stock picking process and five stock stories. continue…

by Roger Montgomery Posted in Editor's Pick, Podcast Channel, Small Caps.

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In this week’s video insight, I delve into the promising realm of small cap companies for 2024, a sector where I’ve maintained a bullish stance since November 2022. The Small Ordinaries Index and the S&P600 Small Cap Index have shown noteworthy gains, underscoring the potential that these companies hold in a recovering economy. As global economic indicators signal a gradual improvement and the potential for a disinflationary boom, the stage is set for innovative small caps to thrive, especially with interest rates poised for a cut.  continue…

by Roger Montgomery Posted in Small Caps, Video Insights.

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Since May last year I have been advocating for investors to consider smaller companies, locally and globally.   

The initial arguments rested on Gavekal Research’s empirical evidence in the late 1970s which said innovative companies with pricing power (of which there is a surfeit among small caps) do well when disinflation (which we see today) meets with positive economic growth (which we also see today).  continue…

by Roger Montgomery Posted in Small Caps.

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2023 saw the largest gap emerge between large-cap companies and small caps since the GFC. The question is, will this gap to close in 2024? 

We are optimistic about Australian small caps, anticipating a highly favourable environment and outperformance. That gap offers greater growth than large caps, at relatively more attractive valuations. continue…

by Roger Montgomery Posted in Editor's Pick, Small Caps, Video Insights.

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by Roger Montgomery Posted in Editor's Pick, Small Caps, TV Appearances.

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In this week’s video insight, I discuss the promising potential for market rallies into 2026, driven by a combination of disinflation and positive economic growth. Highlighting observations and historical trends, I delve into why innovative growth companies, particularly those in the small-cap sector, are poised for significant gains after a period focused mainly on mega-cap technology stocks.  continue…

by Roger Montgomery Posted in Market commentary, Small Caps.

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