Paradigm Capital Management is pleased to announce the launch of a micro-cap strategy, available both as an institutional separate account and as one of our mutual fund offerings.
Candace King Weir and Amelia Weir will co-manage the portfolio. They have managed small-cap portfolios with a significant micro-cap component since 1996. Given Paradigm’s longstanding expertise in micro-cap, we are pleased to offer this new product to the institutional investor community in a stand-alone strategy.
As institutional investors are increasingly focused on finding opportunities that can deliver returns above standard equity benchmarks, we believe that micro-cap equities offer the potential for significant outperformance. In our view, the inefficiencies in this market have never been greater. There are myriad drivers of these heightened inefficiencies, including asset flows away from small-cap (and by definition micro-cap), concerns about illiquidity, as well as the shrinking universe of analyst coverage, to name but a few. We believe that our cumulative history of micro-cap investing provides a breadth and depth of knowledge that should allow us to capitalize on these opportunities.
Capacity is a key consideration in true micro-cap investing, and the Paradigm micro-cap strategy will be limited in the assets it will assume in order to protect investors. This capacity awareness will allow for exposure to a moderately concentrated portfolio of micro-cap companies that have been selected for attractive valuation coupled with earnings growth potential.
A GIPS-compliant track record dating back to 1996 is available by request.