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In a market where big names often steal investors' attention, small-cap stocks have been viewed skeptically on Wall Street due to their underperformance since 2019, exacerbated by rising interest rates.
However, Kornitzer Capital Management’s Chris Carter sees untapped potential in small-cap stocks, despite ongoing challenges from stubbornly high interest rates and the allure of growth giants such as Nvidia (NVDA). The portfolio manager’s strategy hinges on identifying attractively valued companies with robust margins, solid free cash flow, and enduring competitive advantages.