The US outperformance of other equity markets, fuelled by the rise of passive funds, has stretched the earnings multiples for US large cap stocks. Global microcaps offer investors an unparalleled opportunity to invest in economic or market recoveries. They led markets out of the dot-com crash, the GFC, and Covid. This is a segment of the market with its own unique cycle. Marching to the beat of its own drum, the global microcaps sector lowers systematic portfolio risk. Their asymmetry around large market events provides investors with a powerful offence that is a great portfolio defence. - Gino Rossi, Spheria Asset Management. Earn 0.50 CE/CPD hrs on Portfolio Construction Forum