It hasn't been easy being a small-cap investor over the past 12-18 months. Since December 2021, the ASX Small Ordinaries has nosedived around 18%, while the S&P/ASX 200 (which tracks the country's listed large-cap companies) has posted modest gains over the same time period.

So, where to from here?

Well, having rebounded from a fresh low in March, it could be argued that small caps have reached their nadir, offering far more compelling value than their large-cap peers. Given the recent pause in interest rates, it's also worth noting that small caps typically bounce harder when the cycle turns.

To explore these themes and more, Livewire’s Chris Conway was joined by Yarra Capital Management's Katie Hudson and Prime Value's Mike Younger to discuss whether the worst is over for small caps, where they are finding pockets of value, and which stock they got wrong over the past 12 months. 

Plus, for a little bit of fun, we also asked them each to pick one small-cap stock they would go all-in on – but only if they had to, of course.

Note: This episode was filmed on Wednesday 5th of April 2023. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/2-big-buys-and-why-the-worst-could-be-over-for-small-cap-investors