On September 12, Catherine Nicholas, CIO and Portfolio Manager, joined host Gillian Kemmerer and three other small-cap managers to discuss some of the current and prospective drivers of small-cap stock performance.
Video was sponsored by Nicholas. The thoughts and opinions expressed in the video are solely those of the persons speaking as of September 12, 2018 and may differ from the firm as a whole. The opinions expressed are subject to change without notice, may not be realized in the future and should not be considered investment advice. The content is owned and hosted by Asset TV, Inc and intended to provide information and services to investment professionals.
Highlights of Catherine’s comments include:
• At 1:54, Catherine comments on the strength of the current environment driven by strong reported revenues and earnings. Innovation, she highlights, has been a key catalyst for technology, healthcare and consumer discretionary stocks. The near term looks good, she says, but longer term risks include the potential impacts of trade wars and a strong US dollar on emerging markets.
• At 8:38, Catherine shares her constructive outlook for small-cap stocks, though cautions she is conscious of and closely watching areas of the market that trade at extended multiples with little or no earnings, e.g., software-as-a-service (“SaaS”).
• At 20:28, Gillian asks Catherine about how she identifies new ideas, especially in companies with short histories and perhaps no earnings. Catherine gives examples of the characteristics of companies that meet our investment philosophy’s three pillars of change, sustainability and timeliness.