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

A fund manager at Calamos Investments is positioning for a small-cap rebound in 2027, with financial services apps among his favored themes. Brandon Nelson, who runs a four-star rated fund, has made two stock picks tied to that outlook, according to the report.

The call reflects a broader debate about market leadership. Large-caps have dominated returns in recent years, leaving small-caps comparatively cheap by some measures. If that gap narrows, active managers who tilt toward smaller companies could see their relative performance shift. Financial services apps sit at an intersection of two trends: digital adoption in banking and payments, and the potential for smaller financial firms to gain share as technology lowers barriers to entry.

What to watch: whether small-cap earnings growth actually accelerates into 2027, and whether rate conditions support the asset class. Also worth tracking is how the specific apps Nelson favors report user growth, revenue retention, and margins. The picks are one manager's view, not a consensus forecast. Investors should weigh them against their own time horizon and risk tolerance, since small-caps can swing widely in both directions.