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It’s been quite a year in the small to mid-cap space on the JSE. At the time of writing this column, the all share index had risen 16.8% and the mid-cap index was ahead 17.8%. However, both increases pale into insignificance when compared with the 29.2% gain in the small-cap index.A combination of very low valuations, increasing corporate activity via delistings, buy-outs and activism has driven the renewed vigour in the sector.The turn came in late July 2020, when I was reporting on ridiculously low p:e valuations of great stocks that certainly were not going bust.Then, despite the fragile economy, a plethora of sparkling trading updates from the likes of Afrimat, Argent, AdvTech, Cashbuild, Italtile and Santova powered stocks further, as the market caught up with what we specialist small-cap analysts had known for weeks and months due to our constant on-the-ground digging and research.These factors were the main drivers of the outperformance of the small cap index against other in...

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