Can Small Be Beautiful? Life Outside the Mag 7

Small-cap value manager Sean Kammann from Wellington Management joins Greg Dowling, host of the FEG Insight Bridge podcast, to explore life beyond the “Magnificent Seven” and the potential of smaller, overlooked companies.

In this episode, host Greg Dowling welcomes Sean Kammann, Senior Managing Director, Partner, and Equity Portfolio Manager with Wellington Management to discuss the shifting dynamics of equity markets. While the “Mag 7” stocks have dominated headlines, the conversation focuses on opportunities among smaller-cap stocks. Sean discusses the persistence of the small-cap premium, the potential impact of higher growth, inflation and interest rate changes on smaller versus larger companies, as well as the merits of an equal-weighted small-cap portfolio. The discussion highlights the importance of active management, fundamental research, and global diversification in identifying long-term value across sectors and geographies.

Tune in for a thoughtful exploration of alternating market leadership, the case for small and mid-cap investing, and how Wellington is positioning portfolios for a future beyond the Mag 7.

Key Takeaways:

• Wellington Management’s small-cap specialist Sean Kammann emphasizes the importance of looking beyond the “Magnificent Seven” to uncover opportunities in smaller, underappreciated companies with strong fundamentals.
• Macroeconomic factors—such as inflation, interest rates, and monetary policy—are critical inputs into Wellington’s portfolio positioning.
• Active management and deep fundamental research are central to Wellington’s strategy for identifying long-term value outside of mega-cap tech.
• Global diversification and sector rotation are key tools used to navigate market volatility and capitalize on emerging investment trends.

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