Carnelian Asset Management sees small-cap funds as return enhancers, not core holdings
IWM•Carnelian Asset Management recommends small-cap equity as a return enhancer rather than a core holding, suggesting investors allocate 10%–20% of equity exposure with a 7–10-year horizon.
1. Allocation and risks
Carnelian Asset Management recommends small-cap equity as a return enhancer rather than a core holding for high-net-worth investors, suggesting a 10%–20% allocation of equity exposure and a 7–10-year investment horizon. It highlights disciplined sizing and manager selection, citing thin liquidity, redemption pressure and deeper drawdowns as risks, and says systematic investing or entering during broader corrections tends to produce better outcomes than buying at peak optimism.
