Investors have been encouraged to consider the small-capitalization stocks (< $2 billion) to sidestep the crowd of bubbly and overpriced mega-caps, large caps and the latest fads in general
It appears that well-chosen, balanced small-cap selections generate superior performance, compared to benchmarks such as our Total Market Cap Weighted 1200 Index
The intuition is supported by facts, but the search for value amongst the 600 stocks tracked by the S&P small-cap
The selection in our theme is not a recommendation, but intends to encourage anyone to apply the Pininvest filters and analytics to a broad set of companies
Equity Explorer, a screener of the Pininvest database, will assist in a pre-selection of the set
The selection of ratios on the screener will fine-tune priorities before investing (virtually) the selection in a portfolio
A review of the analytics of the portfolio constituents - ranking the shares by ratio for comparison - will refine the portfolio
Financials - the fundamental accounting data - are directly accessible from the ticker of each stock to further identify strengths and weaknesses
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In brief, the present selection has required some further adjustments to establish a fairly balanced distribution between the main sectors, shown on 'Charts' of this presentation
Also, exceedingly volatile shares, abnormal performances (related to M&A) or loss-making firms were excluded
- Excluding shares of companies with market caps on track to exceed $2 billion such as Wolverine Worldwide
, Pitney Bowes or Triumph Group - Also setting apart companies with exceedingly high volatility (and very high performance) such as Cerence CRNC
, Gogo or Digital Turbine - Companies in the process of being acquired by third parties were not included - such as Spartan Nash, AvidBioservices, Corsair Gaming or ProAssurance
- Finally loss making companies such as Arlo
, Anywhere Real Estate , Adtran or Healthcare Services Group may be included in future selections