US Small Cap
Targeting opportunities in smaller US companies
The opportunity
The small-cap market has traditionally offered investors access to a broad and dynamic universe of innovative companies in industries such as healthcare, technology and retail for example, often with attractive growth prospects. Smaller companies are typically able to grow their earnings faster than their large-cap peers as they tend to invest and operate in niche markets and can adapt more readily to changing market conditions due to simpler, more nimble business models.
Because of their size, however, small caps are generally under-researched, and the market is, therefore, less efficient. As such, market inefficiencies can be more easily exploited in smaller companies versus larger, more established market players, which may provide active investors with interesting opportunities to enhance returns.
Source: BNP Paribas Asset Management as of March 2026.
Strategy highlights
Participate in US economic growth
Our US Small Cap strategy seeks to increase the value of its assets over the medium term by investing in shares of US small-cap companies and/or small-cap companies operating in the US. A large and dynamic investment universe, we believe US small-cap equities can offer attractive upside potential, as well as enhanced portfolio diversification.
Diversified sources of alpha
The strategy is well-positioned to capture different potential sources of alpha, investing across sectors and valuations within the US small-cap universe, including stocks outside the Russell 2000 benchmark. By understanding the full value chain of an industry ecosystem, our seasoned investment team is able to use its deep sector experience and extensive industry contacts to help identify potential portfolio candidates with enduring competitive advantages.
High-conviction portfolio
Unconstrained by a benchmark¹, the team seeks to build a high-conviction, resilient portfolio of small-cap names that we believe may offer growth potential at attractive valuations. Their approach combines top-down perspectives with rigorous fundamental bottom-up stock analysis, in-depth valuations, and strict risk monitoring. ESG criteria are integrated at every stage of the investment process.²
Team and expertise
Our US small cap strategy is actively managed by lead portfolio manager Geoff Dailey, an industry veteran with more than two decades of experience specialising in financials and real estate.³ Geoff leads our US and Global Thematic Equities team, with a collective average of over 20 years’ investment experience.⁴ The Boston-based team encompasses portfolio managers, research analysts, and investment specialists, with extensive track records and deep industry expertise.
The US small cap team sits within, and is supported by, BNP Paribas Asset Management’s wider Fundamental Active Equity (FAE) investment group, a global network of fundamental investors. In addition, Geoff and the team benefit from close collaboration with the firm’s dedicated Sustainability Centre, as well as access to our Quantitative Research Group and Macro Research team.
Investment risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment.
The strategy may be exposed to specific risks, including Extra-Financial Criteria Investment Risk, Equity Risk, Small Cap, Specialised or Restricted Sectors Risk, Currency Risk, and Market risk.
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
[1] Comparisons to a benchmark, if provided, are provided for informational purposes only.
[2] ESG: Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[3,4] BNP Paribas Asset Management, as of 31 December 2025
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: www.bnpparibas-am.com.