BFS Delivers Insights and Stock Picks for Benzinga
There are different ways to find overlooked equities in a high-valuation market. I had the opportunity to offer market perspective and review some stock suggestions in an article for Benzinga. The article looks at small-cap stocks as well as opportunistic large cap plays. Here’s an excerpt:
Human behavior is to become less cautious as markets trend higher. That tendency is fraught with risk especially as the complexion of the market changes, as it has in the past six months. There is a reason that “past performance is not an indicator of future results” is the most commonly used disclosure in the investment industry.
A shift in market leadership seems to be underway as investor focus branches out from the “Magnificent Seven.” Within this group of primarily technology stocks that helped drive gains in the S&P 500, only Google and Nvidia outperformed the broader market last year, rising 66% and 39%, respectively. Shares of Amazon, Apple, Meta, and Microsoft all lagged, with Amazon the weakest performer, gaining about 5% in 2025.
Sectors that have trailed the market for several years, including healthcare, energy, and financials, may now be emerging as new leaders, potentially overtaking large-cap technology. It is a good time to dig for quality bargains with well-managed cash flow and strong balance sheets.
In Small-cap Doses
In the final quarter of 2025, small-cap stocks staged a notable advance. From January through the third week of November, the Russell 2000, an index tracking smaller companies, gained just 4.5%, significantly lagging the S&P 500’s 12.3% return. At that point forward, however, small caps began to outperform the broader market by a wide margin.
That strength continued into the first month of 2026, with the Russell 2000 once again significantly outperforming the S&P 500. While this is still a relatively short time frame, the pattern shares similarities with the late 1990s and the subsequent tech boom and bust. Following the bursting of the internet bubble, small-cap stocks experienced a substantial run, rising 66% from January 2000 through December 2007, while the market, represented by the S&P 500, returned just 4.4% over the same period.
Find the rest of the article, including three specific stock picks for this environment by visiting Benzinga.
Jeff is a senior portfolio manager and a member of the firm’s investment committee.
Previously, Jeff was co-founder of Napatree Capital, a boutique investment advisory firm. He brings over 23 years of broad investment experience to BFS. Jeff served as the Managing Director and Chief Investment Officer for Olson Mobeck Investment Advisors, a Hartford-based subsidiary of People’s United Wealth Management, where he oversaw the investment processes, business development, and client service and helped grow revenues significantly during his three-year tenure. Prior to his departure, Jeff was promoted to Regional Manager of the Wealth Management Division where he oversaw the New York and Connecticut markets, which included the integration of the newly-acquired Manhattan-based firm, Gerstein Fisher. Earlier, Jeff managed high net-worth and institutional assets for Washington Trust Wealth Management.
Jeff has achieved the designation of Chartered Market Technician®.
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