The Compelling Opportunity in Small-Cap Stocks

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About This Episode

Several factors point to why this is an exceptional time to invest in small-cap stocks. Small-cap stocks tend to outperform after inflation peaks and in the aftermath of recessions. Small-cap valuations are at 20-plus-year lows relative to large-cap equities. Earnings revisions for small caps are stabilizing and beginning to outpace those of large caps. The M&A market is recovering, which historically correlates with improved small cap performance.

About Our Guest

Eric Green, CFA, is the chief investment officer, a senior portfolio manager and a senior partner with Penn Capital.

Mr. Green has been with Penn Capital since 1997 and as CIO, he is responsible for guiding the firm’s equity and credit strategies. Mr. Green serves as a senior portfolio manager for Penn Capital’s Small-Cap, Small- to Micro-Cap, Small- to Mid-Cap and Mid-Cap equity strategies. As a member of the Equity Risk Committee, Mr. Green works closely with the equity portfolio management team to contribute ideas specifically in the micro to mid-capitalization range.

Prior to joining Penn Capital, Mr. Green was with the Royal Bank of Scotland and the United States Securities and Exchange Commission where he served as a financial analyst in the Division of Investment Management. Mr. Green is also vice chairman of the board of directors for the Anti-Defamation League (ADL) Mid-Atlantic Region and was co-chairman of the ADL's 2018 Walk Against Hate. He received a BSBA cum laude from American University and an MBA from the Yale School of Management.

Show Notes

Here is a link for more information about Eric and Penn Capital:

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