In our exclusive interview, Jay Hatfield (Founder, CEO, and Portfolio Manager at InfraCap) outlines a disciplined approach to small-cap investing built around profitability, valuation, and income generation and discusses the opportunity set for small caps as macro conditions evolve.Jay breaks down the portfolio construction behind InfraCap Small Cap Income Fund (NYSE: SCAP), designed to target 7%+ yield by focusing on profitable, dividend-paying companies, selective preferred exposure, and measured options activity.Key topics we covered:• SCAP’s mandate and portfolio filters: why profitability is non-negotiable in small caps• Income-first small caps: combining dividend payers with preferreds and selective call writing• Risk management lessons: avoiding the “blowups” that drive long-term underperformance• Valuation discipline: using PEG / PEGY (growth + yield) to prevent overpaying• Small-cap setup: why undercoverage and depressed relative valuations can create opportunity• Macro watchlist: why core PCE inflation is the key input for Fed policy and small-cap momentumSmall caps remain an under-researched segment of the market. Jay's process emphasizes repeatable underwriting, downside control, and income as a contributor to total return, particularly in environments where rate expectations and inflation data can shift sentiment quickly.#Investing #SmallCaps #IncomeInvesting #Dividends #PreferredStocks #Macro #FederalReserve #SCAPThis post contains sponsored content. This content is for informational purposes only and is not intended to be investment advice. The opinions RedChip expresses are solely their own and are not the opinions of Infrastructure Capital Advisors, LLC, nor its affiliates. The opinions expressed are for information purposes only and do not constitute an offer to buy or sell securities, options, or cryptocurrency. Please conduct your own research and consult your own tax attorney or financial advisor before making an investment decision. The information in this video and the corresponding websites is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Past performance is not necessarily indicative of future results. No trading strategy is risk-free. Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more. You should trade or invest only “risk capital” – money you can afford to lose. ICA has not been involved in the preparation of the content supplied at these websites, and does not endorse these websites, their sponsors, or any of the policies, products, activities, or services offered on the sites. The content is provided, “as is”, without representation or warranty, express or implied, as to their accuracy, completeness, or timeliness of such content, all of which ICA disclaims. This is not financial advice, and returns are not guaranteed. Do your own due diligence before investing.