Like the management of the niche companies that are found in this capitalization size, the micro cap portfolio manager needs to concentrate on maximizing returns for his clients, rather than enhancing the growth of his firm. The U.S. has benefited from 18 years of benevolent energy prices, world peace, and a superb economy. Clearly, there is interim risk from these levels. Micro caps provide true diversification in an era of closet indexing and style drift. Of course, no one knows whether any sort of market debacle is imminent.
Many investors own small caps to exploit inefficient markets.
However, micro caps tend to be even more advantageously inefficient, with an average of less than two analysts per company. Those who have followed this course in the past half-dozen years have been rewarded with high returns at relatively low risk. All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security or investment advisory services nor shall any such security or investment advisory service be offered or sold to any person in any jurisdiction in which such offer, solicitation, recommendation, purchase or sale would be unlawful under the securities laws of such jurisdiction. This Web site is intended for citizens and residents of the United States only.