Image:
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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