The big rally in small caps has the Russell 2000 easily outpacing the S&P 500 this year. While large-cap tech titans dominate the headlines, small companies have been quietly making noise with investors who have already caught on to the trend.
For nearly two decades, the playbook for U.S. investors was simple: Buy domestic tech and enjoy the ride. However, the conversation has shifted toward a long-overdue resurgence of international investing.
International equities were a very strong segment for investors last year. Foreign firms in Europe, Asia, South America and Africa helped lift portfolios for investors.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| SAO Sherry A. O'Brien Anderson Hoagland & Co | 4,950 | $355,845.05 | $376,269.3 | $20,424.25 | 5.74% |
| CAL CoreCap Advisors LLC CoreCap Advisors LLC | 22,230 | $1.39M | $1.69M | $306,814.28 | 22.11% |
| HM Heidi Mark ENDEAVOR PRIVATE WEALTH Inc. | 15,692 | $996,846.53 | $1.2M | $200,609.99 | 20.12% |
| WF Wayne Freeman DIXON FNANCIAL SERVICES Inc. | 14,540 | $772,946.4 | $1.09M | $316,026.9 | 40.89% |
John Gorlow Cardiff Park Advisors LLC | 7,128 | $373,303.16 | $543,296.16 | $169,993 | 45.54% |
| ARCA Exchange | US Country |
The fund is a specialized investment portfolio focusing on the vast opportunities within the small cap sector outside of the United States. It adopts a diversified approach, targeting a broad spectrum of industries, market sectors, and countries to mitigate risks and capitalize on the growth potential of non-U.S. small cap companies. By committing at least 80% of its assets to equity securities of these companies, the fund positions itself to benefit investors seeking exposure to the dynamic and often underrepresented segment of the global market. This investment strategy signifies a proactive pursuit of higher growth potentials often observed in the small cap domain, albeit with an acceptance of the associated higher volatility and country-specific risks.
As the cornerstone of the fund’s investment portfolio, these are shares of public companies based outside of the United States, specifically within the small capitalization category. This classification typically involves companies with a smaller market cap, offering higher growth potential compared to their larger counterparts. Investing in these securities offers exposure to the innovative and nimble market players in various sectors worldwide, diversifying investment risks and opportunities.
The fund's ability to invest in securities denominated in foreign currencies adds an additional layer of diversification. This not only provides exposure to the underlying equity’s performance but also offers potential gains from foreign exchange fluctuations. However, this comes with the increased risk related to currency volatility, which the fund management aims to mitigate through strategic investment decisions.
ADRs and GDRs serve as a bridge for investors to own foreign equities while dealing with familiar regulatory and financial frameworks. These instruments represent the fund’s indirect investment in foreign companies through U.S. and global securities markets, thereby offering a semblance of domestic investment ease while accessing global opportunities. They are key in providing the fund with the flexibility to tap into international markets without the direct complexities of foreign equity trading.