In this edition of KayneCast, Portfolio Manager Craig Thrasher details his path to small-cap investing, shares his stock selection criteria, and discusses our Global Small Cap Strategy with host Steve Rigali, Executive Managing Director.

Podcast Highlights

• 00:40: Early Influences in Investing
• 02:45: Taking an Interest in Small Cap Stocks
• 06:15: Constructing the KAR Global Small Cap Portfolio
• 07:15: Searching for Non-U.S. Holdings and The Role of the Macro Environment
• 10:22 Differentiating From the Benchmark and Our Peers
• 12:40: Inside the Global Small Cap Portfolio
• 17:42: Closing Thoughts on the Global Small Cap Asset Class

Sneak Peek:

(02:45)

Steve:  So how did you end up focusing on small cap stocks…

Craig:  Well, I think as an investor, you’re always trying to find, like I said, some kind of part of the market that’s not being fully appreciated. So, looking in places where others aren’t, certainly, I think, in the small-cap space, international outside of the U.S. is even less developed than small caps in the U.S. I think we’re always — as investors trying to uncover those hidden gems and certainly have a better chance of doing that within the small-cap space compared to large cap companies.

(15:36)

Steve: What would make you decide to sell one of your portfolio holdings? And would an important macro headline event caused you to reassess one of your holdings…

Craig: Well, the most important thing that we want to use as a reason to sell would be just either deteriorating competitive position or fear that there may be a deterioration in the competitive position of the business over time. We obviously focus on investing in quality companies, and that’s something that we view as the most important investment criteria for us. And so, when we see deterioration there, that’s something that we want to use as an immediate as immediate reason to sell. And on the macro, I would say, obviously, it’s case by case.

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