This is a fact that several of us here know and love, Small/mid cap’s are, have always been, and will most likely continue to be under-researched, under-covered, it’s just the nature of the business. The clever folks over at Franklin Templeton have just put out a short research paper on it, here are some snippets and a link to the paper.

EM small caps are far from a niche investment, despite broad perceptions. The asset class represents more than 23,000 companies with an aggregate market capitalization of close to US$5 trillion¹ and daily turnover of close to US$60 billion, constituting substantial proportions of overall emerging-market liquidity and market capitalization, as the chart below demonstrates. Accordingly, the sheer size of the EM small-cap investment universe provides abundant opportunities to uncover mispriced companies

Source: Franklin Templeton