The first phase of the AI trade rewarded broad calls: “Buy power!” “Sell software!” The next phase will require much more discrimination across business models, capital structures, and industries.
International small cap stocks can help round out a global equity allocation, offering growth and diversification potential beyond international large caps and U.S. stocks.
International small caps offer real opportunity—but navigating 4,000+ companies across dozens of markets takes more than an index. Here are three reasons why active management matters in this area of the market.