The thesis for RMMC is that micro-cap investing is a higher returning pro-cyclical allocation. When small cap does well, micro-cap growth/quality does very well (and vice versa). The manager’s (George Ensor of River Global) core expected return is for a through-cycle mid-teens return driven entirely by earnings growth and M&A. Over the last five years, the fund has returned c5%pa reflecting a substantial de-rating of small/micro-caps and well below the 12.5% IRR generated from inception. Over th ....
