Emerging markets have significantly lagged among global equities in the last several years. However, viewing the asset class through a wider lens, we see a very different picture. In this paper, we shine light on three key reasons to consider an allocation to emerging markets small cap to offset unintended risks and improve outcomes in a global portfolio.
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Where do we go from here?
According to Axioma, the momentum factor just posted one of its best quarters on record in Q1 2024 in global equity markets.
The Case for Global Small Cap Equities
In this analysis, we explore the benefits of a dedicated allocation to global small cap equities. We discuss what factors have contributed to active managers’ consistent success over time and conclude with what style exposures have historically worked best in the global small cap universe.