Core Viewpoint - The article emphasizes the strategy of investing in small-cap stocks to uncover hidden value and generate sustainable long-term returns through deep research and a focus on fundamental analysis [1][2]. Group 1: Investment Strategy - The company aims to identify undervalued small-cap stocks in a liquidity-rich environment, which inherently possess higher uncertainty and potential for greater returns [1][2]. - The approach involves a defensive strategy that prioritizes safety by selecting high-quality assets based on fundamental research, which helps in controlling drawdowns while maximizing upside potential [2][3]. Group 2: Market Conditions - The current A-share market exhibits significant structural differentiation, with concentrated trading in sectors like AI, semiconductors, and robotics, leading to relative weakness in small-cap stocks [4][5]. - Historical patterns suggest that extreme market structures are often unsustainable, indicating that investment opportunities may become more diversified in the near future [5]. Group 3: Valuation Insights - As of October 22, the Wind data shows that the micro-cap stock index has a price-to-book (PB) ratio of 2.49, lower than the 2.81 of the CSI 2000, highlighting a relative valuation gap for small-cap assets [5]. - The current market sentiment may shift, providing accumulation opportunities for small-cap stocks that have solid fundamentals, low previous gains, and are aligned with industrial policy but not yet fully recognized by the market [5].