Active investing in the small-cap space

With less analyst coverage and lower levels of liquidity, small-cap companies are uniquely well positioned for active management. Watch as portfolio manager Kelley McKee discusses the rationale for active investing in the small-cap space.

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we believe that active management is small-caps is still attractive for a few reasons the first is that small-cap companies are still relatively under followed by Wall Street analyst the average small cap company only has four to six analyst following at while large-cap company has about 20 II is liquidity small cats tend to have much lower liquidity in the market then large caps and low volumes of socks can have a significant impact on price movements and sometimes the price movements are not representative of fundamentals and he's pricing and efficiencies allow active manager the opportunity to capitalize on them and lastly the small cat Market is much larger in size than the large cap there over 2,000 names in the small Cat verses about 200 as the large cat there is much greater potential opportunity for Alpha to be generated through sock selection vs. Sektor allocation bats

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