A fund manager who’s beaten 95% of his competitors this year shares how he finds big winners in small-caps — and reveals 3 of his favorite stock picks right now

• Small-cap investing has never been tougher, but Luiz Sauerbronn has managed to succeed in 2023.
• His Brandes Small Cap Value Fund has outperformed 95% of competitors this year.
• Here’s what he looks for in stocks, and three of his favorite picks on the market today.

Small-cap investing isn’t easy in a market dominated by large caps like the “Magnificent 7.” In fact, small caps are trading at a steep discount to the rest of the market as their sensitivity to economic headwinds like higher inflation and restrictive monetary policy curb their growth prospects.