00:00A recent study suggests that with anticipated interest rate cuts and improving market conditions,
00:07investors are increasingly looking at small-cap and micro-cap stocks as promising opportunities.
00:13Commissioned by New Horizon Aircraft, NASDAQ, HOVR, the research indicates a potential surge
00:19in allocations to these market segments over the next 12 months by both institutional and
00:24retail investors.
00:25The study, conducted by Pure Profile, surveyed fund managers managing $82.4 billion in assets
00:31across multiple regions, including the U.S., Canada, and Europe.
00:36Key findings reveal that 76% of respondents expect institutional investors to increase
00:42their exposure to small- and micro-cap stocks, with 34% predicting a rise of 25% or more.
00:49Retail investors are also likely to follow suit, with 83% of respondents forecasting
00:53increased allocations, and 12% even anticipating a potential 50% boost in investments.
01:00Despite this, the study found that there remains a perception that current exposure to these
01:04stocks is underweight, particularly among retail investors.
01:09The study draws parallels to the late 1990s dot-com era, where small-caps outperformed
01:14large-caps following a market downturn.
01:17Today, the valuation gap between small and large-caps is the widest it has been since
01:22then.
01:23There are small-caps trading at 14 times earnings compared to 20 times for large-caps.
01:28This suggests that small-caps may be poised for a period of outperformance once again.
01:32New Horizon Aircraft, a small-cap company in the advanced air mobility space, exemplifies
01:38the kind of innovative businesses that could benefit from this shift.
01:42Their hybrid electric vertical takeoff and landing, EVTOL Aircraft, the Caverite X7,
01:47is designed for diverse applications, positioning the company as a key player in a rapidly evolving
01:53industry.
