Jupiter Origin: investing in global small caps

Jupiter Asset Management lead investment manager Tarlock Randhawa joined Stephen Gunnion the Proactive studio to discuss the investment case for global smaller companies included in the Jupiter Origin Global Smaller Companies Active UCITS ETF (JOGS) and the approach taken by the Jupiter Origin team. Randhawa outlined the structural advantages of investing in small caps, noting their potential for price appreciation and under-researched nature. "We certainly think that there is a larger opportunity of potential price appreciation in the small-cap space," he said, pointing to the wider universe of opportunities relative to large-cap benchmarks. He explained that small caps offer more potential upside but come with higher stock-specific risks. To mitigate this, the team diversifies across around 200 names per portfolio. Randhawa also highlighted that the team seeks companies with a proven history of wealth creation, strong future profitability expectations, and attractive valuations. The Jupiter Origin strategy is built on a rigorous, evidence-based screening process. Starting with a universe of 5,000 stocks, the team applies a mechanical filter based on metrics they believe will lead to outperformance. The final portfolio has over 90% active share compared to the benchmark. While macroeconomic conditions do not drive the team's decisions, Randhawa acknowledged that the current environment — particularly falling interest rates and valuation gaps between small and large caps — is supportive for smaller companies. Discussing the team’s background, he noted that the core members have worked together for 25 years, with 15 years of experience in global small caps. The team of five maintains a disciplined, collaborative process to reduce behavioural biases and maintain consistency in strategy execution. For more insightful interviews, visit Proactive’s YouTube channel. Don’t forget to like the video, subscribe to our channel, and enable notifications to stay updated. #JupiterAssetManagement #GlobalSmallCaps #SmallCapInvesting #TarlockRandhawa #JupiterOrigin #EquityMarkets #StockPicking #InvestmentStrategy #ActiveManagement #InterestRates #PortfolioManagement #ValuationGap