Amid a tenuous global economic landscape, growth opportunities are likely to be at a premium. The immense upside prospects and realized alpha of micro caps make these high-growth companies at early stages of development potentially attractive investments for asset owners.
Interest in the vast and underexplored micro cap universe is expanding as investors look for differentiated sources of alpha at attractive prices:
Equity strategies that offer active management, diversification, and built-in risk mitigation can take advantage of potential opportunities in the less efficient micro cap segment:
We believe PGIM Quant’s proprietary models and comprehensive portfolio construction process are particularly effective in micro caps, which behave differently than other strategies:
1Center for Research in Security Prices (CRSP) monthly data from Jan 1926 – Dec 2021