Equity investors, quite rightly, are looking beyond large caps for opportunity. There's only so much Commonwealth Bank and Magnificent 7 you can have in a portfolio before things start to look top-heavy. 

But moving down the market cap spectrum does not have to equal higher risk - not if you know where to look. 

Whilst small-cap names are often under-researched and overlooked, this can create opportunities for outsized returns. The key is to have a process for unearthing the mispriced or underappreciated gems. 

So, in this episode, Datt Capital’s Emanuel Datt and Yarra Capital’s Michael Steele share what they are looking for when mining the small-cap space, before putting their method to the test by analysing three small-cap names. 

For good measure, they each share a diamond in the rough small cap that they are backing right now. 

Please note this episode was filmed on 7 May 2025.