Nick Markiewicz, Portfolio Manager of the Ellerston Global Mid Small Cap Fund, discussed what he sees as an important shift underway in global equity markets — a rotation from mega cap technology stocks towards small and mid-cap opportunities.
Nick pointed to the recent outperformance of the Russell 2000 versus the S&P 500 and improving US industrial data as early signs that market leadership is broadening. Earnings growth outside the tech giants is beginning to converge, supporting a more constructive outlook for “real economy” sectors.
He also highlighted AI-driven capital expenditure as a key tailwind, particularly for “picks and shovels” businesses supplying data centre infrastructure, as well as durable themes in defence and aerospace.
Companies such as Curtiss-Wright and aircraft lessor AirCap were noted as examples of businesses with strong earnings visibility and limited AI disruption risk.
Nick’s view: as growth broadens, investors may need to look beyond the mega caps to capture the next phase of global equity returns.
🎥 Watch the full interview here:
https://ausbiz.com.au/media/global-stocks-with-flying-prospects?videoId=46949