I joined Sean Aylmer from Fear and Greed’s Summer Series to discuss the strengthening performance of Australian small caps, why quality matters, and where opportunities are emerging. I shared a number of small-cap examples across different sectors to illustrate these points, including ZIP (ASX:ZIP), a buy-now-pay-later business growing strongly in the United States; Megaport (ASX:MP1), a key technology provider connecting data centres where a recent acquisition is yet to be fully recognised by the market; Codan (ASX:CDA), which manufactures gold detectors and continues to benefit from solid demand supported by elevated gold prices; and MA Financial Group (ASX:MAF), a private credit manager seeing strong inflows as investors seek more reliable income.

The key takeaway from this episode was the importance of being selective and backing quality businesses.

You can catch the full episode on Fear and Greed here: Small caps are back. Can they keep going?

Disclaimer:

The Montgomery Small Companies Fund own shares in Zip, Megaport, Codan, and MA Financial Group. This article was prepared 9 January 2026 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade these companies you should seek financial advice.