US small cap
Targeting opportunities in smaller US companies
The opportunity
The small-cap market has traditionally offered investors access to a broad and dynamic universe of innovative companies in industries such as healthcare, technology and retail for example, often with attractive growth prospects. Smaller companies are typically able to grow their earnings faster than their large-cap peers as they tend to invest and operate in niche markets and can adapt more readily to changing market conditions due to simpler, more nimble business models.
Because of their size, however, small caps are generally under-researched, and the market is, therefore, less efficient. As such, market inefficiencies can be more easily exploited in smaller companies versus larger, more established market players, which may provide active investors with interesting opportunities to enhance returns.
Source: BNP Paribas Asset Management as of March 2026.
Strategy highlights
Participate in US economic growth
Our US Small Cap strategy seeks to increase the value of its assets over the medium term by investing in shares of US small-cap companies and/or small-cap companies operating in the US. A large and dynamic investment universe, we believe US small-cap equities can offer attractive upside potential, as well as enhanced portfolio diversification.
Diversified sources of alpha
The strategy is well-positioned to capture different potential sources of alpha, investing across sectors and valuations within the US small-cap universe, including stocks outside the Russell 2000 benchmark. By understanding the full value chain of an industry ecosystem, our seasoned investment team is able to use its deep sector experience and extensive industry contacts to help identify potential portfolio candidates with enduring competitive advantages.
High-conviction portfolio
Unconstrained by a benchmark¹, the team seeks to build a high-conviction, resilient portfolio of small-cap names that we believe may offer growth potential at attractive valuations. Their approach combines top-down perspectives with rigorous fundamental bottom-up stock analysis, in-depth valuations, and strict risk monitoring. ESG criteria are integrated at every stage of the investment process.²
Team and expertise
Our US small cap strategy is actively managed by lead portfolio manager Geoff Dailey, an industry veteran with more than two decades of experience specialising in financials and real estate.³ Geoff leads our US and Global Thematic Equities team, with a collective average of over 20 years’ investment experience.⁴ The Boston-based team encompasses portfolio managers, research analysts, and investment specialists, with extensive track records and deep industry expertise.
The US small cap team sits within, and is supported by, BNP Paribas Asset Management’s wider Fundamental Active Equity (FAE) investment group, a global network of fundamental investors. In addition, Geoff and the team benefit from close collaboration with the firm’s dedicated Sustainability Centre, as well as access to our Quantitative Research Group and Macro Research team.
Investment risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.
The strategy may be exposed to specific risks, including Extra-Financial Criteria Investment Risk, Equity Risk, Small Cap, Specialised or Restricted Sectors Risk, Currency Risk, and Market risk.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
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[1] Comparisons to a benchmark, if provided, are provided for informational purposes only.
[2] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[3,4] BNP Paribas Asset Management, as of 31 December 2025
Important information
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
This material is issued and has been prepared by the investment management company. This advertisement has not been reviewed by the Monetary Authority of Singapore. It contains opinions and statistical data that are considered lawful and correct on the day of their publication according to the economic and financial environment at the time.
This document is produced for information purposes and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or;
- investment advice.
This document does not have any regard to the specific investment objectives, financial situation or particular needs of any person. Investors should consult their own professional advisors in respect of legal, accounting, domicile and tax advice prior to investing in the fund in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Investors considering subscribing for the fund should read carefully the most recent prospectus, offering document or other information material and consult the fund’s most recent financial reports before investing, as available from the investment management company or its authorized distributors. Given the economic and market risks, there can be no assurance that the fund will achieve its investment objectives. Investments in the fund are not deposits or other obligations of, or guaranteed, or insured by the investment management company or its authorized distributors or their affiliates and are subject to investment risks, including the possible loss of principal amount invested. Returns may be affected by, amongst other things, investment strategies or objectives of the fund and material market and economic conditions, including interest rates, market terms and general market conditions. Past performance of the fund or the managers, and any economic and market trends or forecast, are not necessarily indicative of the future or likely performance of the fund or the manager. The value of shares in the fund, and the income accruing to the shares (if any), may fall as well as rise and investors may not get back the full amount invested. Funds which are invested in emerging markets, smaller companies and derivative instruments may also involve a higher degree of risk and are usually more sensitive to price movements.
Views and opinions included in this document constitute the judgment of the investment management company and its affiliates at the time specified and may be subject to change without notice.
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