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These ASX small caps are primed for a ‘catch-up’ rally

When Melbourne-based investment manager LSN Capital Partners launched its small cap fund in 2021, it was a baptism by fire for Nick Sladen.

The unprecedented stimulus pumped into the economy during the pandemic unleashed a wave of inflation, prompting central banks to deliver the most aggressive tightening cycle in a generation. That toxic cocktail caused small caps to underperform their larger peers by nearly 30 per cent from late 2021 to the end of 2024.

Source: https://www.afr.com/markets/equity-markets/these-asx-small-caps-are-primed-for-a-catch-up-rally-20251002-p5mzk8