BNN: Why you shouldn’t shy away from Canadian small caps
The Russell 2000 index seems to be on the comeback trail after a serious dive last week as investors sold off small cap positions in search of stability. But the law of averages suggests some solid companies may have been dragged down by the weak nerves of investors.
David Barr, chief investment officer at PenderFund Capital Management, manages over $80 million in the Pender Small Cap Opportunities Fund. Barr says he’s selling his top performers as their valuations peak, and now he’s looking for the next generation of small cap stocks to maintain the almost 20 percent return his fund has delivered over the last five years.