Seeking Opportunity in the 'Lesser Known'
Allison Thacker, co-manager of multiple RS growth funds, says her team has been taking a look at IPOs and smaller firms that underperformed in 2008 as investors flocked to the safety of 'known quantities.'
Ryan Leggio: The market has obviously recovered significantly since the March lows. Where are you spending a lot of time and where is your team spending a lot of time doing research right now?
Allison Thacker: I think we are seeing opportunities to go back to some areas that hadn't been a particular focus over the last 18 months. One example would be relatively small caps. Some things sub-$500 million market cap really were not a lot of high interest to investors last year. People felt like they wanted to go to known quantities, known management teams; they didn't want to invest in new IPOs. Those type of companies really underperformed in 2008 because investors went back to the safe choices as opposed to these newer choices.
Ryan Leggio does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.