What does SWIB’s small capitalization portfolio look like? How does it fit into SWIB’s investment strategy for the WRS?
When investing in the stock market, there is a list of companies that will be familiar to even novice investors. These companies, which typically have a market capitalization of over $15 billion, are called large capitalization, or large cap, companies and offer investors stability.
However, when building out a successful diversified portfolio, investors cannot overlook small cap companies, which have a greater chance for growth and, in some cases, the potential to become the next large cap stocks of the future.
Joy Mukherjee, lead portfolio manager of SWIB’s small cap equity strategy, explains the difference between large cap and small cap investments, describes some of the common misconceptions of small cap investments, and talks about how SWIB’s portfolio has capitalized on opportunities that had a positive impact on the WRS trust funds.
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