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At the index level, small-cap performance has been unremarkable (though stable) for a while. But under the hood, there continue to be plenty of performing names, and we’ve been fortunate enough to be in a number of them. Our newest position, Mama’s Creations, Inc. (MAMA), has continued to perform well, observes Tyler Laundon, editor of Cabot Small-Cap Confidential.

I’m looking forward to new customer additions (expected, not confirmed yet) as we march through the summer. Mama's Creations is a pure-play deli prepared food vendor that sits right at the intersection of two big-picture trends: Consumers that are time- and budget-constrained, and grocery deli departments that are adapting to meet a tidal wave of demand for high-quality, grab-and-go prepared meals.

Mama's Creations, Inc. (MAMA)

The company is doing all the things we want to see out of a small, growth-oriented player, namely introducing new products, cross-selling, going after big clients, and looking to add a little boost through M&A. The stock was added to the Russell 2000 Index at the beginning of the month.

On the macro front, the odds of a September rate cut have been rising (Jerome Powell’s recent comments have not shut that trend down, which is a positive), with the CPI inflation report paving the way for the Fed to finally ease a little (two cuts now expected this year). We also have the beginning of the Q2 earnings season firing up, with financials being the first group to report.

My recommended action in this market environment would be to consider buying shares of Mama's Creations, Inc.

About the Author

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential. He has spent his entire career managing, consulting, and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company's long-term success. Accordingly, his research focuses on assessing the viability of management's growth strategies, trends in addressable markets, and achievement of major developmental milestones.

Tyler's small-cap portfolios favor a high allocation to stable, high growth companies, upon which he layers strategic purchases of higher risk, event-driven investments. He first began publishing his analysis of small-cap opportunities in 2009. Since 2012, he has led his subscribers into 10 doubles. Between 2012 and September, 2015 his small-cap recommendations generated cumulative returns of over 2,300%, including both winners and losers, and outperformed the Russell 2000 Index by an average of 28% per year.

Prior to joining Cabot, Tyler founded and operated a small business for 15 years. He then worked as a consultant for start-up technology companies, as well as Vermont's largest health care institution. From 2009 to 2015, he was the chief analyst of growth stocks at Wyatt Investment Research, where his research spanned the full spectrum of the growth stock universe, from micro-cap start-ups to multi-national mega-caps.

Tyler holds a B.S. and MBA from The University of Vermont, where he graduated Valedictorian. He has been a long-time contributor to the Wall Street's Best Investments, has been quoted by U.S. News & World Report, and has presented investing ideas and strategies for The Money Show and Bloomberg Markets LiveINSIGHTS.

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