Small caps have rallied as investors rotate away from parts of the large-cap market — but Perpetual’s James Rutledge says the opportunity is about more than a short-term trade. 

In this video podcast, Rutledge explains why overlooked small and micro-cap companies can offer value for long-term investors, and how Perpetual’s disciplined quality filters help identify stronger businesses while managing downside risk.

Here’s an excerpt from the video podcast:

“Investors look at small caps and say that’s a more volatile end of the market. Perhaps there’s not as many eyes on it … and that really gives actual opportunities.

“Our style lends itself to a more longer-term allocation towards small caps.

“We really add a lot of our value historically in that small cap market through stock allocation as opposed to sector allocation.

“Great opportunities have emerged in quite severe market selloffs like we saw during COVID and coming out of COVID."

Listen to the full podcast.

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Learn more about Learn more about Perpetual's Australian equities strategies

Learn more about Perpetual

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This podcast has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535 AFSL 234426.

It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.

The product disclosure statement (PDS) for the Perpetual Pure Microcap Fund and Perpetual Smaller Companies Fund (Funds), issued by PIML, should be considered before deciding whether to acquire, dispose, or hold units in the Funds. The relevant PDS and Target Market Determination can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au.

References to securities in this podcast are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Funds. Past performance is not indicative of future performance.

This podcast may contain forward looking statements or projections. Any such statements are based on PIML’s current expectations and assumptions about future events. They may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. Actual results may differ materially from these projections. Forward looking statements are not representations about future performance and should not be relied upon as such.

This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PIML does not warrant the accuracy or completeness of any information provided by a third party.

To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. All investing involves risk including the possible loss of principal. Past performance is not indicative of future performance.

Small caps have rallied as investors rotate away from parts of the large-cap market &mdash; but Perpetual&rsquo;s James Rutledge says the opportunity is about more than a short-term trade.&nbsp;
In this video podcast, Rutledge explains why overlooked small and micro-cap companies can offer value for long-term investors, and how Perpetual&rsquo;s disciplined quality filters help identify stronger businesses while managing downside risk.
Here&rsquo;s an excerpt from the video podcast:
&ldquo;Investors look at small caps and say that&rsquo;s a more volatile end of the market. Perhaps there&rsquo;s not as many eyes on it &hellip; and that really gives actual opportunities.
&ldquo;Our style lends itself to a more longer-term allocation towards small caps.
&ldquo;We really add a lot of our value historically in that small cap market through stock allocation as opposed to sector allocation.
&ldquo;Great opportunities have emerged in quite severe market selloffs like we saw during COVID and coming out of COVID."
Listen to the full podcast.
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Learn more about Learn more about <a href="https://www.perpetual.com.au/asset-management/australian-shares/">Perpetual's Australian equities strategies</a>
Learn more about <a href="https://www.perpetual.com.au/">Perpetual</a>
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This podcast has been prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535 AFSL 234426.
It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances and we recommend that you seek professional advice.
The product disclosure statement (PDS) for the Perpetual Pure Microcap Fund and Perpetual Smaller Companies Fund (Funds), issued by PIML, should be considered before deciding whether to acquire, dispose, or hold units in the Funds. The relevant PDS and Target Market Determination can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au.
References to securities in this podcast are for illustrative purposes only and are not recommendations, and the securities may or may not be currently held by the Funds. Past performance is not indicative of future performance.
This podcast may contain forward looking statements or projections. Any such statements are based on PIML&rsquo;s current expectations and assumptions about future events. They may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. Actual results may differ materially from these projections. Forward looking statements are not representations about future performance and should not be relied upon as such.
This podcast may contain information contributed or prepared by third parties. Any information contributed or prepared by third parties is believed to be accurate as at the time of compilation and is being provided in good faith without independent verification. PIML does not warrant the accuracy or completeness of any information provided by a third party.
To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor&rsquo;s capital. All investing involves risk including the possible loss of principal. Past performance is not indicative of future performance.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.

Perpetual Group is an international asset manager including boutiques such as Perpetual, Pendal, Barrow Hanley, Regnan and Trillium. Each week our portfolio managers share the most interesting things they've heard from CEOs, industry leaders and analysts.