Episode
Why International MicroCaps Resemble the U.S. Opportunity of the 1990s with Robert Gardiner, Chairman & Co-Founder of Grandeur Peak Global Advisors
- Published
- Jan 13, 2026
- Duration seconds
- 4034
- Processing state
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Summary
International micro-cap markets in Japan, the UK, and the Nordics currently mirror the high-inefficiency, low-coverage environment of the 1990s U.S. market. Robert Gardiner explains how a rigorous bottom-up approach and physical company engagement can uncover alpha in these unloved global regions.
Topics
- Micro-cap investing
- Global equity markets
- Japan stock market
- Investment process
- Fundamental analysis
- Value investing
- Small cap stocks
- Corporate governance
Highlights
- Main idea: International micro-cap markets like Japan and the Nordics are currently experiencing a period of high inefficiency and low institutional coverage
- Practical takeaway: Effective global investing requires 'touching the company' through on-the-ground visits to validate qualitative management signals that AI cannot capture
- Failure mode: Over-weighting valuation metrics at the expense of fundamental momentum can lead to falling into value traps
- Main idea: The rise of private equity and regulatory shifts in the U.S. have significantly shrunk the available opportunity set for domestic micro-cap investors
- Practical takeaway: Successful long-term investing relies on a culture of ownership and a disciplined process of continuous, incremental improvement
Chapters
6:50The Evolution of Small Cap Research: Reflecting on the transition from early computing to the AI era and the enduring challenge of identifying future giants.16:40Founding Grandeur Peak: Lessons carried over from Wasatch and the transition to establishing a new global investment firm.22:00The International Opportunity: Why US investors have abandoned international small caps and why the current global landscape is ripe for value seekers.27:00The Japanese Market Shift: Analyzing the rise in dividends, buybacks, and M&A activity within Japanese micro-cap companies.32:00Quantitative Screening and Qualitative Research: How to use advanced screening to filter 35,000 companies and the necessity of physical site visits.36:50The Importance of 'Touching' Companies: Why direct engagement with management provides critical data points that digital research misses.56:50Refining Investment Culture: Lessons from a sabbatical on balancing research breadth with depth and fostering a culture of ownership.