Money Magazine

When size isn’t everything

10 MOST-ASKED QUESTIONS

Q What is your definition of a small cap stock?

As opposed to large cap “blue chips”, small companies tend to be less understood by investors. Often they will be earlier-stage companies or ones that have a niche product offering. They generally sit outside the top 100 companies on the ASX. At Macquarie, we also run a micro cap fund (emerging companies), which is focused on very small companies, which generally have a market capitalisation below $500 million.

DEREK BILNEY

Q What are the common features of good small cap stocks?

All good small cap companies will have high-quality management and strong corporate governance practices. Although all companies benefit from

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