Comment about Aust small caps in general but applies to a...

Comment about Aust small caps in general but applies to a greater degree to resource small caps. I can see within the latest moves a degree of improvement in the smaller end too. Usually, it goes: large resources ( BHP, RIO, SFR); then producers; then developers. This time it got to producers because of a derath of Large cap Cu with the exception of SFR. Separately Fund managers are saying there will be more floats to.
Well, we at RXM rate a better bet than floats of explorers.


Fund managers enthusiastic about Aussie small caps renaissance26 March 2024 • By Maja Garaca Djurdjevic

Fund managers are forecasting a renaissance for Australian small caps in 2024. Fund managers have highlighted potential for small caps to benefit from a more favourable macroeconomic environment and the alignment of various positive factors, with Australian small caps expected to outshine their international counterparts this year.

Datt Capital’s Emanuel Datt explained that while US small caps offer possibly greater depth and diversity, Australian small caps present distinct advantages for investors seeking value and growth.“The inefficiencies and relative under-coverage of the Australian market create fertile ground for identifying overlooked gems and undervalued assets,” the chief investment officer of Datt Capital said.

The Australian small cap market remains under-researched, which in turn can present unique opportunities for astute investors to uncover undervalued assets and generate outsized returns.“The Australian market is considerably cheaper than the US market on a relative basis,”

Datt said. “Valuation differentials between the two markets are quite apparent, with Australian equities trading at more attractive multiples compared to their US counterparts.

All IMVHO.