{"id":255335,"date":"2025-06-06T12:40:29","date_gmt":"2025-06-06T12:40:29","guid":{"rendered":"https:\/\/www.quoniam.com\/?p=255335"},"modified":"2025-08-13T08:44:03","modified_gmt":"2025-08-13T08:44:03","slug":"small-cap-potentials","status":"publish","type":"post","link":"https:\/\/www.quoniam.com\/en\/article\/small-cap-potentials\/","title":{"rendered":"Unlock the potential of the smaller companies universe"},"content":{"rendered":"\n<div class=\"wp-block-group is-style-smallBG\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h5 class=\"wp-block-heading\">Uncovering hidden value<\/h5>\n\n\n\n<p>A key opportunity in the small-cap space is that they are often under-researched. It is not economically or commercially viable to devote an army of analysts to these stocks. Many of these stocks receive limited attention from traditional analysts, creating a landscape rich in potential.<\/p>\n\n\n\n<p>Our data-driven, quantitative approach is designed to systematically exploit large universes, detecting undercurrents in the vast ocean of data. Proprietary models analyse 3,000 European companies every day allowing us to uncover hidden value in small cap stocks. The benefit to investors is not only more opportunities, but also a high level of diversification and lower tracking error.<\/p>\n\n\n\n<p>All relevant fund data for the Quoniam managed QFS SICAV &#8211; European Small Cap can be found here:<\/p>\n\n\n\n\n\n\n<div class=\"linkListeWrapper qm-element\" style=\"--color:;\">\n                <ul class=\"linkListe\">\n                            <li>\n                    <a class=\" blank \" href=\"https:\/\/www.quoniam.com\/en\/strategies\/funds\/LU3056066262\/\" target=\"_blank\"  title=\"QFS SICAV - European Small Cap EUR A dis\" \">\n                                                <div class=\"headline\">QFS SICAV &#8211; European Small Cap EUR A dis<\/div>\n                        <span class=\"vs-icon-link_pfeil_font\"><\/span>\n                    <\/a>\n                <\/li>\n                            <li>\n                    <a class=\" blank \" href=\"https:\/\/www.quoniam.com\/en\/strategies\/funds\/LU3056066429\/\" target=\"_blank\"  title=\"QFS SICAV - European Small Cap EUR I acc\" \">\n                                                <div class=\"headline\">QFS SICAV &#8211; European Small Cap EUR I acc<\/div>\n                        <span class=\"vs-icon-link_pfeil_font\"><\/span>\n                    <\/a>\n                <\/li>\n                            <li>\n                    <a class=\" blank \" href=\"https:\/\/www.quoniam.com\/en\/strategies\/funds\/LU3056066346\/\" target=\"_blank\"  title=\"QFS SICAV - European Small Cap EUR I dis\" \">\n                                                <div class=\"headline\">QFS SICAV &#8211; European Small Cap EUR I dis<\/div>\n                        <span class=\"vs-icon-link_pfeil_font\"><\/span>\n                    <\/a>\n                <\/li>\n                    <\/ul>\n    <\/div>\n\n\n\n\n<h5 class=\"wp-block-heading\">Objective alpha<\/h5>\n\n\n\n<p>We not only cover the breadth of the small cap market but analyse each stock across over 60 metrics that are empirically shown to affect alpha. The foundation is proven performance drivers: value, quality and sentiment, complemented by a machine learning model. Our data-driven approach makes our evaluation objective, without the risk of subjective decisions based on management relationships or the appeal of company stories.<\/p>\n\n\n\n<p>Historical data also shows that not only is the small cap market truly inefficient, but that our model is able to capture the hidden value that exists relative to the more efficient mid and large cap segments.<\/p>\n<\/div><\/div>\n\n\n\n<h5 class=\"wp-block-heading\">Figure 1: Quoniam\u2019s forecast model captures more alpha for small caps<\/h5>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2025\/06\/2025-06_smallCap_EN.svg\" alt=\"\" class=\"wp-image-255331\"\/><figcaption class=\"wp-element-caption\">Source: Quoniam Asset Management GmbH, European and European Small Cap universe, monthly rebalanced, pure factor effects calculated size neutral, size performance calculated relative to market cap weighted benchmark, all prior to transaction costs; April 2025<\/figcaption><\/figure>\n\n\n\n<div class=\"wp-block-group is-style-smallBG\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h5 class=\"wp-block-heading\">Active diversification beyond the benchmark<\/h5>\n\n\n\n<p>Portfolio implementation is another value-added element of Quoniam\u2019s small cap strategy. By capturing the entire investment universe, we discover ample opportunities and include more than 200 single holdings in the portfolio. The active share regularly exceeds 75% relative to the benchmark, highlighting the active style of the strategy, which selects securities both in and outside the reference index. Greater diversification is a key to success in small caps, where idiosyncratic risks tend to be higher given that business models are less proven, external financing is less secure and business models are often mono-strategies.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Precision in trading<\/h5>\n\n\n\n<p>We not only identify attractive small cap opportunities, but also ensure that these opportunities are executed with precision, adding value through both superior stock selection and cost-efficient portfolio implementation.<\/p>\n\n\n\n<p>A key differentiator for Quoniam is our fully integrated in-house trading desk, which is essential for cost-effective and seamless portfolio implementation. Our trading desk ensures precise execution by utilising multiple venues, applying strict pre- and post-trade of cost analysis, and a focus on minimising transaction costs. This capability allows us to efficiently bring portfolios to life, even in less liquid small cap stocks where trading costs can quickly erode returns without the right expertise.<\/p>\n\n\n\n<p>Over the past three years, Quoniam has achieved a minimal implementation shortfall of just 8 basis points in developed market equities. For mid cap stocks (market caps between USD 2.5 bn and USD 10 bn), the market impact rose to 34 basis points, while for small caps (under USD 2.5 bn), it reached 49 basis points. These competitive results demonstrate our ability to balance the potential for higher returns in less liquid stocks with the need for cost-efficient trading. (As of December 2024)<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Attractive historical performance<\/h5>\n\n\n\n<p>Quoniam\u2019s systematic approach to small cap investing is a better way of capturing alpha. Since the inception of our strategy, we have consistently delivered second quartile levels of return with a lower risk profile than the peer group leading to an exceptionally high information ratio. In addition, the maximum drawdown remains relatively low, underlining the robustness of our approach (Source: eVestment, March 2025).<\/p>\n<\/div><\/div>\n\n\n\n<h6 class=\"wp-block-heading has-text-align-center\">YOU MIGHT ALSO BE INTERESTED IN<\/h6>\n\n\n\n<div class=\"wp-block-group alignfull\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n\n<div class=\"smallBGwhite qm-element\">\n    <div class=\"grid-container\">\n    \n        <div class=\"grid-x grid-margin-y grid-padding-x small-up-1 medium-up-3 \">\n                                                                            <div class=\"newsTeaserWrapper cell\">\n                                    <div class=\"newsTeaser \">\n                                        <a class=\"link-overlay\" href=\"https:\/\/www.quoniam.com\/en\/artikel-en\/lipper-fund-awards-2026\/\" title=\"Quoniam wins multiple LSEG Lipper Fund Awards 2026\"><\/a> \n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2026\/06\/2026-06_lipperfund-448x220-c-default.jpg\" loading=\"lazy\" \/>\n                                            <div class=\"play-button-overlay\"><\/div>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Artikel\n                                                    \n                                                <\/div>\n                                                <div class=\"date\">\n                                                    June 2026\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">Quoniam wins multiple LSEG Lipper Fund Awards 2026<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>Quoniam Funds Selection SICAV European Equities EUR A Dis, Quoniam Fund Selection SICAV \u2013 Euro Credit EUR A Dis and Quoniam Funds Selection SICAV Global Credit MinRisk EUR A hedged Dis have been announced as winners at the LSEG Lipper Fund Awards 2026.<\/p>\n \n                                                 \n                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                            <\/div>\n                                                                                    <div class=\"newsTeaserWrapper cell\">\n                                    <div class=\"newsTeaser \">\n                                        <a class=\"link-overlay\" href=\"https:\/\/www.quoniam.com\/en\/interview\/ai-systematic-equities-disclipline-speed\/\" title=\"AI in systematic equities: Why discipline matters more than speed\"><\/a> \n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2026\/03\/D-W_interview_Stroh-448x220-c-default.jpg\" loading=\"lazy\" \/>\n                                            <div class=\"play-button-overlay\"><\/div>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Interview\n                                                    \n                                                <\/div>\n                                                <div class=\"date\">\n                                                    May 2026\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">AI in systematic equities: Why discipline matters more than speed<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>Artificial intelligence is already part of the research toolkit in systematic investing. For professional investors, however, the relevant question is not simply whether a manager uses AI. It is whether AI is integrated into a disciplined process, tested rigorously, and governed with clear accountability.<\/p>\n \n                                                 \n                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                            <\/div>\n                                                                                    <div class=\"newsTeaserWrapper cell\">\n                                    <div class=\"newsTeaser \">\n                                        <a class=\"link-overlay\" href=\"https:\/\/www.quoniam.com\/en\/press-release\/quoniam-partnership-with-dufolio-and-alforis\/\" title=\"Quoniam strengthens presence in France, Monaco and Luxembourg through partnership with Dufolio and Alforis\"><\/a> \n                                        <div class=\"image\">\n                                            <img decoding=\"async\" src=\"https:\/\/www.quoniam.com\/wp-content\/uploads\/2026\/02\/2026-02_GDS-Presse-448x220-c-default.png\" loading=\"lazy\" \/>\n                                            <div class=\"play-button-overlay\"><\/div>\n                                        <\/div>\n                                        <div class=\"info\">\n                                            <div class=\"preHeader\">\n                                                <div class=\"cat\">\n                                                    Press release\n                                                    \n                                                <\/div>\n                                                <div class=\"date\">\n                                                    May 2026\n                                                <\/div>\n                                            <\/div>\n                                            <div class=\"headline\">Quoniam strengthens presence in France, Monaco and Luxembourg through partnership with Dufolio and Alforis<\/div>\n                                            <div class=\"introText\">\n                                                                                                    <p>Quoniam Asset Management has entered into a strategic partnership with Dufolio and Alforis to further expand its institutional and wholesale client coverage in France, Monaco and Luxembourg.<\/p>\n \n                                                 \n                                            <\/div>\n                                        <\/div>\n                                    <\/div>\n                            <\/div>\n                                                \n            \n        <\/div>\n    <\/div>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Uncovering hidden value A key opportunity in the small-cap space is that they are often under-researched. It is not economically or commercially viable to devote an army of analysts to these stocks. Many of these stocks receive limited attention from traditional analysts, creating a landscape rich in potential. Our data-driven, quantitative approach is designed to [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":255333,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"none","_seopress_titles_title":"Unlock the potential of the smaller companies universe","_seopress_titles_desc":"After years of underperformance, valuations for European small caps remain relatively attractive compared to large caps and other regions. The sector lends itself to active investing, and even more so to active systematic investing. Quoniam\u2019s systematic investment approach offers distinct advantages in identifying and capitalising on opportunities in the small cap space.","_seopress_robots_index":"","footnotes":""},"categories":[44,115],"tags":[89,41],"class_list":{"0":"post-255335","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-article","8":"category-artikel-en","9":"tag-data","10":"tag-equities"},"acf":[],"_links":{"self":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/posts\/255335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/comments?post=255335"}],"version-history":[{"count":15,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/posts\/255335\/revisions"}],"predecessor-version":[{"id":259490,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/posts\/255335\/revisions\/259490"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/media\/255333"}],"wp:attachment":[{"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/media?parent=255335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/categories?post=255335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.quoniam.com\/en\/wp-json\/wp\/v2\/tags?post=255335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}