MicroCapClub Uncovering the Edge in Canadian Microcaps by Ryan Telford
Nov 14, 2025
Ryan Telford, Head of Evidence Based Research at MicroCapClub, reveals why Canadian microcaps outperform their U.S. counterparts. He discusses the resource concentration in Canada and differences in revenue and profitability, emphasizing how liquidity affects investment. Telford introduces his GUTS framework (Growth, Undervalued, Timing, Sentiment), showcasing its relevance for successful strategies. He highlights the stronger net margins and momentum signals in Canadian microcaps, making for a compelling case for investors eyeing this sector.
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Canadian Microcaps Outperform U.S. Peers
- Canadian microcaps have outperformed U.S. microcaps over the past decade across several strategies.
- The MCGuts Canadian-focused index returned about 10x versus ~5x for the U.S. version over ten years.
How Microcaps Were Defined For The Study
- Ryan defines microcaps as stocks with market caps ≤ CAD/USD 300M and minimum liquidity thresholds.
- The MCGuts universe excludes OTC listings, financials, and utilities for cleaner comparisons.
Sector Makeup Differs Sharply By Country
- Roughly 30% of liquid stocks globally are microcaps, but sector mixes differ by country.
- Two-thirds of Canadian microcaps are mining and energy, while U.S. microcaps skew to healthcare and financials.