Small stocks are really well positioned relative to large-cap growth due to significant valuation differences.

Large-cap growth had an enormous run, leading to fixation and neglect of misunderstood smaller companies.

Predicts the war will end because Trump and Republicans realize they can't be competitive in the midterms without lower oil prices and a stable economy.

Invests in small-cap companies that can do well in a volatile environment, like Smuckers and Scotts Miracle-Gro.

Describes them as solid, steady, patient stocks with economic promise.

The shifted regulatory environment creates bite-sized opportunities for private equity to help smaller stocks realize value through spin-offs or subsidiary sales.

Points to companies like Lazard and Carlisle as enablers of this 'economic engineering'.

Public and private markets can co-exist; excesses in private credit will get weeded out, leaving the big players (KKR, Carlisle, Apollo) successful.

They have the best people and cash to take advantage of bargains.