History

Perritt Capital Management, Inc. has been investing in smaller companies since the firm's inception in 1987. The firm's small company investment strategy was built on the research of Rolf Banz, a University of Chicago doctoral student who discovered the first crack in the foundation of the efficient market theory, dubbed "the small firm effect." The effect is the tendency of common stocks of small companies to outperform the stocks of large companies at equivalent levels of risk.

In 1983 Dr. Gerald W. Perritt published the first issue of Investment Horizons, an investment advisory newsletter based on the analysis of small company stocks. Over time, readers wished to become investors, and in 1987 Dr. Perritt formed Perritt Capital Management, Inc. The goal was to provide investment management services to high net worth individuals and institutional investors, while remaining focused on the advantages of small company stock investing.

That same year, in a 1987 issue of Investment Horizons, Dr. Perritt first formulated the investment strategy for the All Weather Portfolio. A strategic asset allocation portfolio, it is designed to serve the needs of investors seeking capital appreciation, current income, and capital preservation within several asset classes. Offering a variety of small cap equity and asset allocation strategies, Perritt Capital Management, Inc. now oversees approximately $100 Million in assets for high net worth individuals.