Seven Reasons to Invest in Micro Caps — and How to Do it Right

Essex’s Co-CEO, Nancy Prial, recently wrote an article highlighting several reasons of how to and why to invest in Micro-Cap Stocks:

Savvy investors have long understood the benefits of small-cap stocks. They know that an
allocation to a less-efficient area of the market can improve the risk/return profile of a
portfolio. The same and more can be said about micro caps. It is a highly inefficient market
segment where large, widespread information gaps and security mispricing can be exploited to
achieve significant alpha. But the idiosyncrasies that make micro caps so compelling also
underscore the need for careful stock selection and in-depth research. Active management, as
well as thoughtful execution and a long-time horizon can be critical for success with a micro-cap
allocation…Click here to read more