The Globe and Mail reports in its Tuesday edition that while many investors are hooked on blue-chip stocks, David Barr has his eye on small-cap companies he believes can outperform their larger peers. The Globe's Brenda Bouw quotes the chief executive officer at PenderFund Capital in Vancouver saying: "One of the key reasons we focus on the small-cap space is that the market is less efficient. More computers and algorithms drive trading today, which means more capital is chasing mega and large-cap names. As a result, the small-cap market has fewer participants, which means fewer people to figure out these businesses. So, we believe we have an analytical edge and can hopefully generate alpha for our clients." Mr. Barr's $250-million Pender Small Cap Opportunities Fund's F Class has seen a one-year return of 6.2 per cent, while its five-year annualized return is 11.2 per cent. Mr. Barr says the one stock he wishes he did not sell is Descartes System, the logistics software company. "We bought it in the single digits in 2011 and sold it a couple of years later, thinking it approached fair value. The stock is currently selling at around $120. So, I guess we were wrong." Mr. Barr advises investors to focus on the long term.