Invest In Small Companies

Mathieu Martin
Dec 06, 2023
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Do you like the Stocks & Stones content and seek exposure to small public companies but don’t know where to start?

Investing in this space requires a significant commitment of time and energy. You can’t rely on other people’s research because there is none. You have to go to the source, read the financial statements, and perform the on-the-ground research yourself.

It’s absolutely possible to succeed if you commit the time. However, if you’re too busy, there is another option. You can opt for a professionally managed microcap strategy.

A microcap strategy might be a good fit for your portfolio if:

  • You have an interest in finance and the stock market but are too busy to manage certain asset class allocations in your portfolio.

  • You have a high capacity and willingness to take risks.

  • You have a long-term horizon (ideally 5 to 10 years).

  • You are seeking exposure to an asset class that can improve your portfolio’s returns while providing diversification benefits.

A microcap strategy would NOT be a good fit for your portfolio if:

  • You are not familiar with the volatility of the stock market.

  • The prospects of having 50%+ drawdowns make you uncomfortable (it has happened and will probably happen again sometime in the future).

  • You are looking for a low-fee, passive strategy. The microcap asset class presents significant inefficiencies that an actively managed strategy can exploit.

  • You might need your capital for other projects or investment opportunities within the next 5 years.

I am the Portfolio Manager of the Rivemont MicroCap Fund, a fund focused on finding the most promising growth companies in North America. And my goal is to find them early in their development to reap the largest returns.

You can visit Rivemont’s website to learn more about the fund.

Feel free to contact me directly at: mathieu.martin@rivemont.ca

I’m looking forward to hearing from you,

Mathieu Martin, CFA