It's fair to say there is something truly exhilarating about investing in a winning small-cap. And over the past 12 months, the ASX has produced a considerable few.

Battery material producers like Pilbara Minerals (ASX: PLS) and Chalice Mining (ASX: CHN) completely shot the lights out, while cancer therapy companies Imugene (ASX: IMU) and Race Oncology (ASX: RAC) similarly impressed. Meantime, the S&P/ASX Small Ordinaries has lifted 27.3% over the past year, and 12% in 2021 alone.

In our latest Buy Hold Sell thematic, Perpetual's Nathan Hughes and Australian Ethical's Mike Murray join Livewire's Ally Selby as they sift the local small-cap sector and open their stock selection playbooks.

Nathan points to decarbonisation plays like copper as a sector that has him excited, as well as some of the more mature retailers as an area of opportunity. However, it's healthcare and tech that really revs Mike's engine.

If that's not enough, our fundies also provide you with some helpful tips on sorting the duds from the darlings within the small-cap arena, including the red flags they believe you should watch out for. Plus, they also name two companies each that are capable of becoming the champions of the ASX over the years to come.

Note: This episode was filmed on Wednesday 15th September 2021. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/how-to-uncover-the-next-small-cap-champions/