Equity markets are inherently emotional and often overreact to events. This creates exploitable dislocations that offer excess return opportunity for contrarian, long-term-oriented investors. Small-cap stocks can experience larger dislocations. Lack of analyst attention, less transparency and lower liquidity all magnify the impacts from emotional investor behavior. Aegis believes excess returns can be generated by: purchasing a well-researched portfolio of fundamentally sound small-cap stocks trading at low valuations during periods of stress or neglect, when liquidity is low and investor sentiment is poor, holding these investments patiently through periods of short-term price volatility while fundamental conditions normalize, and selling after fundamental trends reverse, as recovery becomes visible and investor sentiment improves, driving valuations higher.