Serious investors who directly invest in small-cap stocks often resort to the ‘scuttlebutt’ technique.
Sahil Sharma, a software engineer from Delhi, who sees himself as a multi-tasker, analyse small-cap companies in his spare time. But volatile and sometimes irrational movements in such stocks present a challenge. “Coming from a science background, solving a mathematical question or writing a program is very deterministic. But investing, especially in small-caps, is a probabilistic game, where things change rapidly," he said.