Micro Caps Offer a Window To Emerging Growth
Q&A that explains the advantages of Micro Caps and the role they can play in asset owners’ portfolios.
Micro caps and private equity offer investors exposure to emerging companies with substantial growth potential. But what sets micro caps apart from private equity?
Micro cap stocks, particularly in the US, are an often-overlooked segment of the market: smaller companies, often just getting off the ground, running with limited (or even no) earnings, but brimming with new and innovative ideas and seemingly unlimited upside potential. Sound like a private equity pitch? It should! Investing in micro caps and private equities gives exposure to small companies with incredible growth potential. In fact, the return profiles for micro caps and private equity have essentially mirrored one another for more than a decade. But what sets micro cap apart from private equity?