The Globe and Mail reports in its Tuesday edition that 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 has been adding to Pender's position in Thinkific Labs, which offers a cloud-based software platform that helps on-line creators. The company has been increasing its percentage of revenue from small to medium businesses, so it is moving into a more sticky, predictable revenue base. The company turned cash-flow positive in November last year and the stock has rebounded nicely since.