Spheria Asset Management names 3 ASX small cap cash flow kings

The team at specialist small and microcap fund manager, Spheria Asset Management, have been busy looking at small cap ASX shares they believe offer investors exceptional cash flow.

Why is cash flow important?

Spheria Asset Management’s Portfolio Manager, Marcus Burns, explained the importance of cash flow when looking at small caps.

He commented: “When it comes to investing in small caps, too many investors ignore cash flow, but when it comes to small caps, cash is king.”

“Key to our investment process is buying businesses that generate predictable free cash flows at an appropriate multiple for the forecast growth profile. By default, this lends itself to screening out companies that don’t generate cash, lack…