US small-caps are set to offer a strong play in the current macroeconomic environment given their "surprisingly cheap" valuations and growth prospects, even in the event of a recession, experts told Investment Week.
Rob Forker, portfolio manager at Polen Capital, said the sector represented an "attractive opportunity" from both a structural standpoint and tactical allocation, given the current market environment. He said the "persistent inefficiency of the asset class" from liquidity constraints and minimal analyst coverage represented a strong structural opportunity for active managers. This is a good environment for US small-caps, he noted, because they appear inexpensive compared to both large caps and their own history. When comparing small-cap and large-cap indices, he said that "one woul...
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