Median microcap managers, according to Russell, outperformed its Russell 2000 index as well as the average smallcap manager by more than 1000 basis points in five of the last six years.

Betcha didn’t know that…

Not done yet.

The other bottomline is that the small or micro cap market is unique in that it really has no bellweather names—it is purely a stock pickers arena. That’s why we love the challenge and ever-changing nature of these companies. In a word, it’s never dull.

Wall Street spends more time telling us how much they dislike, ignore or don’t understand the smallcap genre. That’s just fine, because they don’t. Not to mention there’s nothing financial in it for these ‘investment dealers’ to follow them.

The typical smallcap investor—not the punter—has to have certain qualities. First; a strong constitution—have you looked at the chart above? Second, and related to the first is to establish a strong risk tolerance and solid trading strategy. We always try to provide stop loss targets when appropriate, but the amount of risk assumed is purely a personal matter. Oh yes, and likely the most important of qualities: Patience. Neither Rome nor Microsoft was built in a day.``