A year ago I sat down with Oscar Oberg, lead portfolio manager at Wilson Asset Management. His thesis then was that small caps were beaten down and due some mean reversion.

Alas, small caps haven’t done much since then, with the Small Ords returning 3.91%. Yet Oscar’s thesis also remains unchanged. 

In fact, it’s gotten stronger!

Not only is he positioning for a rebound in smalls and microcaps, he’s doing it with overweight exposure to consumer discretionary, a sector that has been tarred and feathered by today’s macroeconomic landscape of high inflation and high rates. As Oscar puts it, “there’s no mean reversion without consumer discretionary.”

In today’s episode, Oscar lays out this thesis and the companies that make it up. 

He also discusses:

• the relationship between the tech rally and small caps;

Note: This episode was recorded on Tuesday July 20, 2023.

Timestamps