Financial advisors believe small cap growth is a core allocation benefitting clients’ portfolios due to the persistence of what' been dubbed the "small company premium." The best way to access small cap growth is through active management. Small cap allocations cluster at about 5%-10% of equity portfolios despite advisor latitude to larger allocations.
These are among the consensus findings in Calamos' recent research Building Client Portfolios with Small Cap Growth: Views from Financial Advisors 2019. Nearly 800 advisors answered an array of questions regarding how they gain exposure to small cap companies for their clients.
Advisors, for more information:
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