Schwab Network Finding the ‘Gems’ in Small Caps with Calamos’ Nelson
5 snips
May 9, 2025 
Brandon Nelson, Senior Portfolio Manager at Calamos, specializes in uncovering growth in small-cap stocks. He emphasizes the potential of this often-overlooked sector, highlighting the need for strategic stock selection. Nelson shares insights on two promising picks: Adma Biologics, known for its innovative treatments, and Lincoln Educational Services, which boasts strong enrollment and job placement rates. His strategies focus on identifying sustainable growth, challenging stereotypes about small-cap investments.
AI Snips
Chapters
Transcript
Episode notes
Big Winners in Small Caps
- The biggest winners often come from small and micro cap stocks, below $5 billion market cap.
- Many investors dismiss small caps, but that's where you find the most significant growth opportunities.
How to Pick Small Cap Winners
- Focus on stocks with sustainable growth and underestimated growth potential.
- Look for companies with a track record of meeting or exceeding earnings expectations consistently.
Small Caps Can Outperform Selectively
- Even when small caps lag large caps by a lot, carefully picked small caps can still perform excellently.
- Stocks with fast and underestimated growth can get their valuation multiples expanded significantly.