FY26 was a testing year for active small cap managers. Here’s what actually drove it, and why the setup from here looks more interesting.

William Hanna, Investment Analyst – Maple-Brown Abbott Australian Small Companies Fund, looks beneath the index: industrials down 4% while resources rose 30%, the unwind of the crowded tech and gold trades, and a gold universe that’s drastically changed. He also explains why the small caps derate over the last 12 months is the kind of discomfort that has historically preceded stronger forward returns – and why the team isn’t sitting around waiting on the RBA.