Toronto Firm Crushes Small-Cap Index With Virus-Proof Bets

  • Wayfair, bubble wrap help Crimson fund jump 23% this year
  • Gains compare to return of less than 1% on the Russell 2000
Ken Jesudian
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Small companies have been a poor place to hide in an economy roiled by Covid-19, but one Canadian fund is beating the market by picking the ones that are thriving in the work-from-home era.

Crimson Asset Management’s flagship fund, which holds stocks with an average market value of $3.2 billion, has gained more than 23% this year through Thursday, crushing the Russell 2000 small-cap index’s 0.4% return and the S&P/TSX Composite Index’s 0.5% total loss. (Returns are in Canadian dollars and include dividends.)