Brew Markets Small-Cap Stocks Are Having A Run: What to Know
Jan 23, 2026
Manny Weintraub, principal and portfolio manager at Cannell & Spears who specializes in small-cap investing, cash-flow analysis, and dividends. He talks about why small caps are rising now and how he defines and evaluates them. He highlights attractive sectors like industrials, distribution, and select tech. He also explains why broad ETFs may not match active small-cap strategies.
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Small Caps Power The Domestic Economy
- Small-cap stocks often have higher domestic revenue and can benefit from reshoring trends in the U.S..
- Manny Weintraub thinks small caps may lead the next wave of outperformance after mega-cap tech has peaked.
Prioritize Free Cash Flow
- Buy small-cap companies that generate strong free cash flow and have good returns on invested capital.
- These traits reduce volatility and let companies buy back shares or pay shareholders during downturns.
Choose Dividend-Paying Names
- Favor small-cap companies that pay a dividend to align management and shareholders.
- Dividends discourage opportunistic behavior and improve corporate alignment, Manny says.