ChineseWalls and @elpassive if i may. I come from FM.Small cap,...

ChineseWalls and @elpassive if i may. I come from FM.

Small cap, mid cap and large are all well defined. The def are also well defined in benchmarks used by funds and well defined again in their IM (aussie) / offering documents (offshore). No serious fund manager would touch a stock below $300m in the small cap world - unless there is some out of the ordinary reason to go below that. An extraordinary reason would need to got to an investment committee prior to executing - if not that PM would be taking monumental career risk for minimal return to the portfolio. If the stock offers such great outsized portfolio returns, the PM has taken outsized risk, and prob should not be managing investor funds.

Additionally, fund managers will try to stick to benchmark definitions and very seldom take tail risk - again career ending as it is reviewed internally by risk, compliance, inv committees, CIO. Then again reviewed by each of those committees at the Investor level (think outsourced funds , like running Core equity port for Vanguard (an index provider) via small cap third party mandate). There are numerous layers of review for a well run fund management biz and funds.

And sure there are micro cap funds but those also have min mkt caps. Last time i looked at that strategy (as we never ran anything that small) i thought the min was $100m and some specy funds (not ones i would touch ) went down to $50m.

There are a few funds in Aus that will buy anything with a 'massive' potential but those aren't fundies in traditional sense. Those are liquidity providers , prop books, or cowboys.

Hope this helps.

IMHO, buy back would be a terrible signal to the market. Div i can sorta get my head across but i would give it time for fundamentals to get stronger.