Actively Managing a Diversified Portfolio of Small-Cap Companies
Buffalo Funds Small Cap co-portfolio manager Jamie Cuellar, CFA, was recently interviewed by The Wall Street Transcript, where he discussed how his team analyzes small-cap company valuations and why they view the asset class as very inefficient. He also provides several examples of companies within his portfolio that highlight his team’s investment strategy at work:
- Twilio (NYSE:TWLO)
- Mimecast (NASDAQ:MIME)
- CoreCivic (NYSE:CXW)
- MasTec (NYSE:MTZ)
Jamie also gave his outlook on small-cap companies in the United States in the coming year, including the impact of the current economy, the recent tax cuts, and the repatriation of corporate cash holdings back to the United States.
“We believe that by investing in an actively managed and diversified portfolio of companies that benefit from long-term industrial, technological or general market trends, and trading at attractive valuations, are going to lead to superior growth of capital over time.“ ~ Jamie Cuellar, CFA, Co-Portfolio Manager, Buffalo Small Cap Fund
To access The Wall Street Transcript article click here.
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AUM stands for Assets Under Management. API stands for Application Programming Interface. ARPU stands for Average Revenue Per User. SMB stands for Small/Medium-size Business. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, Amortization. Cash flow is the total amount of money being transferred into and out of a business. REIT stands for Real Estate Investment Trust. Dividend yield is a dividend expressed as a percentage of a current share price. GDP stands for Gross Domestic Product. M&A stands for Mergers & Acquisitions. P&L stands for Profit & Loss. The Russell 2000 is an unmanaged index that consists of the smallest 2,000 securities in the Russell 3000 Index, representing approximately 10% of the Russell 3000 total market capitalization. It is not possible to invest directly in an index.
Jamie Cuellar, co-portfolio manager, discusses how his team analyzes small-cap company valuations and why they view the asset class as very inefficient, while providing several examples of companies within his portfolio that highlight his team’s investment strategy at work.
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