Investing is Not Sports | 2026 Small Cap Inefficiencies with Chris Tessin

In this episode of the Market Misbehavior podcast, Dave is joined by Chris Tessin, Founder and Managing Partner at Acuitas Investments. Recorded July 14th 2026

Chris breaks down why the often-ignored small and microcap space is currently the richest corner of the market for generating alpha. We dig into how the glaring lack of Wall Street analyst coverage creates massive inefficiencies for active managers to exploit, and how a "multi-manager" approach can smooth out volatility by blending complementary investment styles. The conversation also explores the critical differences between the Russell 2000 and S&P 600 benchmarks, how the AI boom is creating "picks and shovels" opportunities in small-cap industrials, and why performance chasing fails because "investing is not sports."

If you enjoyed this interview, please check out Chris Tessin's work at: https://acuitasfunds.com/

📈 Topics Covered
• Why the glaring lack of Wall Street analyst coverage in small and microcaps creates massive alpha opportunities
• Unpacking the "multi-manager" approach: How blending complementary managers removes single-manager volatility and smooths the ride
• The critical difference between the Russell 2000 and the S&P 600 (and why the S&P's profitability/quality screen matters)
• Understanding the "Russell Rebalance": How the pruning process works as stocks grow out of the index
• Finding AI "picks and shovels" plays in the small-cap industrial sector rather than chasing overvalued mega-cap tech stocks
• Why investing is not sports: The psychological dangers of bandwagoning and performance chasing in your portfolio
• The structural argument for maintaining a permanent, evergreen allocation to small and microcap stocks

🎓 Take Dave’s FREE course on behavioral investing: https://www.marketmisbehavior.com/freecourse
📘 Check out Dave’s recommended reading list: https://www.marketmisbehavior.com/readinglist

👉  Follow Dave on X: https://x.com/DKellerCMT
👉  Follow Dave on Bluesky: https://bsky.app/profile/dkellercmt.bsky.social
👉  Follow Dave on Facebook: https://www.facebook.com/marketmisbehavior
👉  Follow Dave on Instagram: https://www.instagram.com/marketmisbehavior

The content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice.