Today we’re joined by portfolio managers Connor Gordon and Chris Maludzinski, as they discuss the kinds of opportunities that they are unearthing in small cap companies across the globe. They co-manage the top rated Fidelity Global Small-caps Opportunities Institutional Trust. Connor explains their investment strategy, which includes ‘quality plus change equals mispricing.’ They search for situations where there is change and dislocation which creates uncertainty. Through that uncertainty with Fidelity's research advantage, they try to find situations where they can form a differentiated view of the future. Connor adds that they are looking for companies that have great free cash flow dynamics, high return on capital that allows them to grow at higher rates over time. Chris adds in the small-cap space, it really is prone to mispricing and dislocation. They look for exceptional management teams, companies that have really high return on invested capital, and more importantly large growth runways in front of them.

Recorded on November 9, 2023.

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