How Do Micro-Cap Fund and Stocks Fit Into Your Portfolio? Ask Paradigm Capital Management

1. How Do Micro-Cap Fund and Stocks Fit Into Your Portfolio? Ask Paradigm Capital Management Micro-cap Funds and stocks are known for being little investments which can provide massive returns, and of course, these high rewards can mean that there is a higher risk involved with getting involved with them. Hence, if you want them to become involved in your portfolio, it might be worthwhile making them more of a minority in your assets, in contrast to the bulk of your investments being in entities with a lower risk. Before they can fit into your portfolio, you need to do as much as possible to find information regarding the business itself. With larger investments that are on the stock markets, this be easy - as research analysts provide the latest information concerning business activity. However, because micro-cap investing are more complicated and of a lesser value, they do not get the notice and exposure of larger stocks - meaning that you have to use your own initiative in order to make a judgment.

2. How highly you invest into a micro-cap stock can depend on data which should be readily available to you - depending on how long the company you are looking at has been active. The 52-week high/low is a really great way to gauge how a micro-cap stock is performing, as you will be able to see a micro-cap's lowest and highest share price within an annual period. From here, you can get an idea for how much a share is fluctuating. You may find it hard to justify the presence of a micro-cap fund and stock in your portfolio, particularly if it is not earning the money that you need it to earn - or the money that you expect it to. It can take time for the rewards to emerge from making these investments, as the firm works on researching and developing their product, or getting it marketed. However, if you believe that a company has the potential to succeed, persevering with their progress could allow you to make amazing returns when the share prices begin to rocket from the minimal amount you paid provisionally. If you believe that you need help in making sure that the micro-cap stocks you are interested in will fit into your portfolio, there are also a number of things which you can do to achieve your goals. There are investment companies that will follow up on the companies in which you are interested, doing the necessary research and reading the paperwork necessary for a clear judgment on a company to be made. From there, you can proceed toward a professional opinion on whether or not stocks would fit into the portfolio you already have, whether they would pose too much of a risk to your assets, or whether you would need to do some rebalancing with current investments to minimise the risk and make the acquisition smoother. With a long history of small-cap investing, Paradigm Capital Management employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. Paradigm Capital Management is focused on a single minded purpose: To ensure that our clients have the best information on which to base intelligent financial decisions in pursuit of superior investment performance. For more details, please visit here: http://paradigmcapital.com/