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10 Questions with Michael Corbett on Micro-Caps

Perritt's Michael Corbett on micro-cap inefficiencies and opportunities.

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Laura Lallos, Morningstar magazine's managing editor, interviewed Corbett in July.

1. Perritt's process was built on academic research demonstrating the "small-firm effect." How has it evolved over time?
One of the tools we've added is a 9-factor evaluation strategy that was developed by Joseph Piotroski at the University of Chicago to judge companies' financial strength. Companies that pass the majority of these factors exhibit enhanced shareholder value. We also endeavor to obtain a more detailed understanding of the motivations of other majority shareholders, to align ourselves with those that share our goals.

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

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