A Macro View of Micro-Caps

Fund manager Robert Sullivan thinks they're still valued attractively and will outperform larger outfits as the economy recovers

Smaller-cap stocks should continue doing well as the market and economy improve, says Robert J. Sullivan, portfolio manager of Satuit Capital Micro Cap Fund (SATMX ). They still have favorable valuations, he notes, and he expects domestically oriented small companies to outperform their larger bretheren. However, he urges investors to diversify and to keep their micro-cap stocks at 15% to 25% of a portfolio.

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