Two stock picks from a money manager who expects small caps to roar in 2027

Brandon Nelson, a manager at Calamos Investments, is optimistic about the prospects of small-cap stocks, predicting a significant surge in 2027. His four-star fund has been positioning itself for this potential growth by investing in financial services apps. This sector has shown resilience and adaptability in recent years, with many apps revolutionizing the way financial services are delivered and consumed.

Nelson's focus on financial services apps within the small-cap space is noteworthy, as it suggests a belief in the long-term viability and scalability of these businesses. The financial services sector has been undergoing significant changes, driven by technological advancements and shifting consumer preferences. By backing companies that are at the forefront of this transformation, Nelson is essentially betting on their ability to capture a larger market share and deliver sustained growth.

To watch next: The performance of small-cap stocks, particularly those in the financial services app space, will be crucial in validating Nelson's predictions. Investors should keep an eye on market trends, regulatory changes, and technological advancements that could impact these companies' growth trajectories. Additionally, the overall economic conditions leading up to 2027 will play a significant role in determining whether small caps, as a category, will indeed experience the roaring growth that Nelson anticipates.

Originally reported by marketwatch.com. FundNews adds analysis for finance & markets readers.