How a handwritten letter can lead to success in the small-cap space

Personal touch can make a big difference

clock • 3 min read
Katharina Raatzis of the Berenberg European Small Cap fund
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Katharina Raatzis of the Berenberg European Small Cap fund

The theory of the ‘small-cap premium’ is well known: overtime small caps tend to outperform large caps because they have higher earnings and cashflow growth, although this only holds true over the mid-to-long term.

Consequently, investors need to truly understand and analyse the underlying, structural growth drivers of a company, discarding the noise of unpredictable short-term factors. To do this, financial data...

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