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While macroeconomic factors are an important driver for asset allocators, once the decision has been made to invest in global small caps, fundamentals return to the fore. Cash flow generation, quality balance sheets and valuations are long-term drivers of outperformance in this asset sub-class. Macroeconomic VUCA concerns become an opportunity creator in the vast small caps sector. The limited research coverage and the inefficiencies in this market are the opportunity that creates a strong hand for prepared fundamental investors.