Australian small caps had one of their strongest reporting seasons in years, finishing August comfortably ahead of large caps. Resources led the way, with gold the standout and small cap gold equities amplifying the move well beyond the commodity price. Acquirers were active at the small end too, with takeover bids landing at meaningful premiums to pre-bid share prices. Small caps continue to trade below their long-run average valuation, with stronger earnings growth expected than large caps. Watch Phillip Hudak, Co-Portfolio Manager of the Maple-Brown Abbott Australian Small Companies Fund, on the key themes from the August reporting season.