We believe that having exposure to smaller companies through an active management approach offers investors attractive investment returns over the medium and long term. In addition, investors can gain important diversification benefits that they may otherwise forego by not having smaller companies in their overall portfolio.
Blueprint Capital Management seeks to invest where market inefficiency is greatest. The small cap equity universe is defined as companies with a market value below $500 million. There are 5,000+ companies within this universe actively trading today. In comparison, the large cap universe of equities, defined as companies with a market value exceeding $5 billion, has only 600 active equities. Investors are generally over-exposed to the large cap universe.
Blueprint Capital Management aims to exploit information advantages in this market segment through original fundamental research and greater access to senior level management. We intend to make investments supported by strong thematic growth opportunities with definable catalysts, highly incentivized management teams, low institutional ownership, and relatively clean capital structures. We will seek companies with multiple revenue streams, at or near inflection points in their growth. Blueprint will exploit its size and scale advantage, able to nimbly invest where other larger market participants are unable.