Agecroft CEO Urges Investment in Global Small-Cap Equities

Don Steinbrugge, founder and CEO of Agecroft Partners, asserts that global small-cap equities currently provide a compelling entry point for investors. He notes that small-cap stocks are trading at one of the widest valuation gaps relative to large-cap stocks seen in recent decades.

Steinbrugge attributes these potential mispricings to structural inefficiencies in how global research is organized and a general under-research of the small-cap universe. He argues that these gaps create opportunities for investors to find undervalued assets.

To support his position, Steinbrugge points to historical data dating back to 1927. He states that smaller companies have outperformed large caps by approximately three to four times on a cumulative basis across various economic cycles and market regimes.