Discover Growth

Why we believe small companies present key opportunities to tap into the heart of innovation and expansion in emerging markets.

Key Takeaways

  • In our view, the universe of small companies in emerging markets is vast, deep and diverse.
  • Small-cap companies in emerging markets can mirror some of the traits of developing countries—fast-growing, unpredictable and bursting with potential.
  • One of the main risks to manage, in our opinion, is liquidity. It’s crucial that small companies progress through operational milestones to help build cash flow and strengthen balance sheets.
  • China has its challenges and but let’s not forget the sheer scale of its economy and there are an abundance of quality companies for investors to get exposure to, in our view.

The allure of small companies is in many ways rooted in the notion that less can offer the prospect of more. Businesses setting out on a path of innovation, ingenuity or bold expansion can offer the tantalizing possibility that they will become established, cash-rich, household names with potentially formidable competitive moats.