| Hesperian's investment methodology is premised on several fundamental views of capital markets, particularly as they relate to North American small capitalization equities and the Canadian energy sector.
It is an axiom of the markets that it is easier to show a 50% return on one dollar than it is on a million dollars. This is one of the principals that guides the investment philosophy of Hesperian. We believe that opportunities for growth and capital appreciation are maximized by investing in small capitalization companies.
Another axiom is that markets are efficient at pricing value only when there is adequate understanding and an abundance of information. By their nature, small capitalization companies are niche oriented, and react to larger, overarching trends. In addition to this, small capitalization companies are under-researched relative to large capitalization companies, therefore creating a knowledge advantage for conscientious investors.
|
