Michael Petro of Putnam Investments - Investing in Small-Cap Value Stocks

Sep 6, 2022

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The stock market is often seen as a place for high-risk, high-reward investments. But for those willing to do their research and take a more patient approach, there can be great rewards in investing in small-cap value stocks. Small-cap investing focuses on companies that have smaller market caps than most stocks. They tend to be more volatile but offer greater potential rewards.

In this episode, Rusty talks with Michael Petro, Portfolio Manager at Putnam Investments. Michael has been in the investment industry since 1999 and joined Putnam Investments in 2002. In his role, Michael is responsible for the overall strategy and positioning of Putnam's small-cap value products.

Michael talks with Rusty about investing in small-cap value stocks, how these stocks perform in different market environments, and how inflation impacts this fund.

Key Takeaways

[01:49] - How Michael entered the world of investing.
[08:20] - Michael's investment philosophy and strategy mandate at Putnam.
[10:59] - How small-cap value stocks perform in different market environments.
[12:48] - What Michael thinks about the economy and the market.
[16:02] - How inflation impacts small-cap value stocks.
[19:22] - How Michael invests his own money.
[21:14] - How Michael maintains his physical and mental health to perform at his best.

Quotes

[03:10] - "I learned a lot about business at a young age, and I'd like to bring some of that knowledge and experience with me to my investing." - Michael Petro

[11:50] - "Small-cap value stocks do well in the broad middle of the cycle in normal times when the economy is growing because there's a lot of opportunity in small-cap value stocks." - Michael Petro

[13:11] - "The strength of the consumer balance sheet keeps us out of recession." - Michael Petro

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1496-OPS-8/18/2022