Why Small Cap?
You have to start small to become big – that is one way of describing the European Small Cap Universe. St. Petri Capital believes the small cap segment is home to the winners of the future – great, high-quality companies with an edge, which can provide you as an investor with the potential for excess returns.
What does small cap give you as an investor?
- Focused companies
– a company that is exposed to a market or a technology that you believe in and has a sizeable impact on the company’s earnings.
- Local monopolies
– companies with very strong local or regional market positions.
- Low to no analyst coverage
– many small cap companies are not covered – you can find hidden treasures.
- Low information flow
– we occasionally see that quality small cap companies have been forgotten by the market because of a lack of news, which can be an excellent buying opportunity.
- Access to management
– you get a much closer contact to top management which is valuable as these people make the decisions about the future of the company.
Small cap companies are generally conceived as riskier than mid and large cap companies. This is a view that we do not agree with. The risk does not depend on the size of the company, but rather on what the company is doing, their balance sheet, the management team and how they position themselves.
St. Petri Capital is dedicated to finding great small cap companies – companies with an edge – all over Europe.