A Small Cap Stock with a Giant Client
Dan Veru, co-chief investment officer of Palisade Capital Management, expects market volatility to continue, and he’s placing his bets on small caps.
“Small caps are attractive because they’ve done the worst,” says Veru. “The small cap indexes, as measured by the Russell 2000 and the Microcap Index, have been the worst performing equity indexes year-to-date.”
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“We’re seeing a lot of value in a lot of the small companies that we [follow], and we’re focused on those companies that have exposure outside the United States.”
Veru likes Harsco , an industrial services and engineered products company -- with more than 60 percent of its revenue outside the United States.
“Their business is going to benefit from infrastructure buildout in China, as they’re helping them build out their railroads.”
Disclosure information was not available for Veru or his company.