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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.'

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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.

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Ryan Leggio does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.