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New Research Predicts an Increase in Allocation from Institutional and Retail Investors to Small- and Micro-Caps Over the Next 12 Months

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New Horizon Aircraft (NASDAQ: HOVR) has published global research indicating a potential increase in small- and micro-cap stock allocations from both institutional and retail investors over the next 6-12 months. The study, involving fund managers with $82.4 billion in assets under management, reveals that 76% expect increased institutional exposure to small and micro-caps, with 34% anticipating a 25% or greater increase. For retail investors, 83% of fund managers predict increased allocations, with 52% expecting over 25% growth.

The research also highlights that about one-third of fund managers consider current exposure to small and micro-caps as underweight for both institutional and retail investors. Horizon Aircraft's CEO, Brandon Robinson, suggests that anticipated interest rate cuts and improving market conditions may drive this shift towards smaller cap stocks, which often offer higher growth potential during economic rebounds.

New Horizon Aircraft (NASDAQ: HOVR) ha pubblicato una ricerca globale che indica un potenziale aumento nelle allocazioni di azioni small e micro-cap sia da parte di investitori istituzionali che retail nei prossimi 6-12 mesi. Lo studio, coinvolgendo gestori di fondi con 82,4 miliardi di dollari di asset in gestione, rivela che il 76% prevede un'esposizione istituzionale maggiore verso small e micro-cap, con il 34% che prevede un aumento del 25% o più. Per quanto riguarda gli investitori retail, l'83% dei gestori di fondi prevede allocazioni maggiori, con il 52% che si aspetta una crescita superiore al 25%.

La ricerca evidenzia anche che circa un terzo dei gestori di fondi considera l'attuale esposizione a small e micro-cap come sotto-pesata sia per gli investitori istituzionali che retail. Il CEO di Horizon Aircraft, Brandon Robinson, suggerisce che i tagli previsti ai tassi d'interesse e il miglioramento delle condizioni di mercato possano guidare questa transizione verso azioni a capitalizzazione minore, che spesso offrono un maggiore potenziale di crescita durante le riprese economiche.

New Horizon Aircraft (NASDAQ: HOVR) ha publicado una investigación global que indica un posible aumento en las asignaciones de acciones small y micro-cap tanto de inversores institucionales como retail en los próximos 6-12 meses. El estudio, que involucra a gestores de fondos con 82,4 mil millones de dólares en activos bajo gestión, revela que el 76% espera un mayor nivel de exposición institucional a small y micro-caps, con el 34% anticipando un aumento del 25% o más. Para los inversores retail, el 83% de los gestores de fondos predicen asignaciones incrementadas, con el 52% esperando un crecimiento superior al 25%.

La investigación también destaca que aproximadamente un tercio de los gestores de fondos considera que la exposición actual a small y micro-caps es insuficiente tanto para los inversores institucionales como para los retail. El CEO de Horizon Aircraft, Brandon Robinson, sugiere que los recortes esperados en las tasas de interés y las condiciones del mercado en mejora pueden impulsar este cambio hacia acciones de menor capitalización, que a menudo ofrecen un mayor potencial de crecimiento durante las recuperaciones económicas.

뉴 호라이즌 항공(NASDAQ: HOVR)은 향후 6-12개월 간 기관 투자자와 개인 투자자 모두의 소형 및 마이크로 캡 주식 배분이 잠재적으로 증가할 것이라는 글로벌 연구 결과를 발표했습니다. 82.4억 달러의 자산을 운용하는 펀드 매니저들을 대상으로 한 이 연구에 따르면, 76%가 소형 및 마이크로 캡에 대한 기관의 노출이 증가할 것으로 예상하며, 34%는 25% 이상 증가할 것으로 예상합니다. 개인 투자자에 대해선 83%의 펀드 매니저가 증가된 배분을 예측하고 있으며, 52%는 25% 이상의 성장을 기대하고 있습니다.

연구는 또한 약 3분의 1의 펀드 매니저가 소형 및 마이크로 캡에 대한 현재 노출이 기관 및 개인 투자자 모두에게 부족하다고 생각한다고 강조합니다. 호라이즌 항공 CEO 브랜드 로빈슨은 예상되는 금리 인하와 개선된 시장 상황이 소형 주식으로의 전환을 촉진할 수 있으며, 이러한 주식은 경제 회복기에 더 높은 성장 잠재력을 제공한다고 제안합니다.

New Horizon Aircraft (NASDAQ: HOVR) a publié une recherche mondiale indiquant une augmentation potentielle des allocations d'actions small et micro-cap de la part des investisseurs institutionnels et particuliers au cours des 6 à 12 mois à venir. L'étude, impliquant des gestionnaires de fonds détenant 82,4 milliards de dollars d'actifs sous gestion, révèle que 76% s'attendent à une exposition institutionnelle accrue aux small et micro-caps, avec 34% prévoyant une augmentation de 25% ou plus. Pour les investisseurs particuliers, 83% des gestionnaires de fonds prévoient des allocations accrues, avec 52% s'attendant à une croissance supérieure à 25%.

La recherche souligne également qu'environ un tiers des gestionnaires de fonds considèrent que l'exposition actuelle aux small et micro-caps est insuffisante tant pour les investisseurs institutionnels que particuliers. Le PDG de Horizon Aircraft, Brandon Robinson, suggère que les baisses prévues des taux d'intérêt et l'amélioration des conditions du marché pourraient favoriser ce changement vers des actions à faible capitalisation, qui offrent souvent un plus grand potentiel de croissance lors des rebonds économiques.

New Horizon Aircraft (NASDAQ: HOVR) hat eine globale Forschung veröffentlicht, die auf eine potenzielle Erhöhung der Zuweisungen von Small- und Micro-Cap-Aktien sowohl von institutionellen als auch von privaten Investoren in den nächsten 6-12 Monaten hinweist. Die Studie, an der Fondsmanager mit 82,4 Milliarden Dollar in verwalteten Vermögen beteiligt sind, zeigt, dass 76% eine erhöhte institutionelle Exposition gegenüber Small- und Micro-Caps erwarten, wobei 34% von einer Erhöhung um 25% oder mehr ausgehen. Bei privaten Investoren sagen 83% der Fondsmanager einen Anstieg der Zuweisungen voraus, wobei 52% ein Wachstum von über 25% erwarten.

Die Forschung hebt auch hervor, dass etwa ein Drittel der Fondsmanager die aktuelle Exposition gegenüber Small- und Micro-Caps sowohl für institutionelle als auch für private Investoren als zu gering erachtet. Der CEO von Horizon Aircraft, Brandon Robinson, schlägt vor, dass die erwarteten Zinssenkungen und die Verbesserung der Marktbedingungen diesen Wandel hin zu Small-Cap-Aktien vorantreiben könnten, die oft während wirtschaftlicher Erholungsphasen ein höheres Wachstumspotenzial bieten.

Positive
  • 76% of fund managers expect increased institutional exposure to small and micro-caps
  • 83% of fund managers predict increased retail investor allocations to small and micro-caps
  • 52% of respondents believe retail allocation to small and micro-caps could increase by more than 25%
  • Anticipated interest rate cuts and improving market conditions may drive increased investment in small and micro-cap stocks
Negative
  • 33% of fund managers describe current institutional exposure to small and micro-caps as underweight
  • 32% and 27% of fund managers describe retail investors' allocation to small-caps and micro-caps as underweight, respectively

The research findings suggest a potential shift in investor sentiment towards small- and micro-cap stocks. With 76% of fund managers anticipating increased institutional exposure and 83% expecting higher retail allocation, this could signal a bullish outlook for smaller companies. However, it's important to note that these are predictions, not guarantees.

The current "underweight" status of small- and micro-caps in portfolios (32% for small-caps, 27% for micro-caps) indicates a possible undervaluation in these sectors. If the predicted allocation increase materializes, it could lead to significant price movements in these stocks. Investors should be cautious, though, as small- and micro-caps typically carry higher volatility and risk.

The anticipated increase in small- and micro-cap allocations could be driven by expectations of interest rate cuts and improving market conditions. Historically, these stocks have shown potential for higher growth and earnings acceleration during economic rebounds. However, investors should consider that this outperformance isn't guaranteed and often comes with increased risk.

The collective $82.4 billion AUM of surveyed fund managers lends credibility to the study, but it's important to note that this represents a fraction of the global investment landscape. The potential 25% or greater increase in allocations, if realized, could significantly impact liquidity and valuations in the small- and micro-cap space, potentially creating both opportunities and risks for investors.

Horizon Aircraft's Cavorite X7 eVTOL aircraft showcases innovative hybrid electric technology, potentially addressing key challenges in the emerging urban air mobility sector. The ability to recharge in-flight and operate 98% of the mission in a low-drag configuration could offer significant advantages in range and efficiency over pure electric designs.

The focus on a more conventional aircraft design for most of the flight may indeed simplify certification processes, a important factor in bringing new aviation technologies to market. However, investors should note that the eVTOL market is highly competitive and regulatory hurdles remain significant. The success of Horizon's approach will depend on real-world performance validation and regulatory approval, which are yet to be fully demonstrated.

TORONTO, Aug. 06, 2024 (GLOBE NEWSWIRE) -- New Horizon Aircraft (NASDAQ: HOVR), doing business as Horizon Aircraft (“Horizon Aircraft” or the “Company”), the advanced aerospace engineering company and developer of eVTOL (electric Vertical Take-Off and Landing) aircraft, publishes new global research* that indicates fund managers that invest primarily in small-cap and micro-cap stocks believe there will be an increased level of exposure to small and micro-caps from both institutional and retail investors over the year ahead.

The global study with small and micro-cap fund managers in the US, Canada, Europe, the Middle East and Asia with collectively $82.4 billion assets under management, found that 76% of respondents anticipate the level of exposure to small and micro-caps from institutional investors to increase over the next six to 12 months. One in three (34%) fund managers believe allocations could increase by 25% or more.

The findings also reveal that 83% of fund manager respondents expect retail investors to increase their allocation of small and micro-caps over the next six to 12 months. Over half (52%) of respondents believe that the allocation could increase by more than 25%, and one in eight (12%) believe that exposure to small and micro-caps could rise by more than 50%.

One in three fund managers describe the current level of exposure from institutional investors to both small- and micro-caps as being underweight, with 21% of respondents describing the allocation to micro-caps as being “slightly underweight” and 11% describing it as being “extremely underweight”. Institutional investors’ current level of exposure to small-caps and micro-caps is described as being overweight by 4% and 23%, respectively. A similar picture is seen with retail investors, with fund managers describing this group’s allocation to small-caps and micro-caps as being underweight (32% and 27%, respectively) and as being overweight (17% and 13%, respectively).

Brandon Robinson, CEO of Horizon Aircraft, said: “Our research indicates that one third of fund managers believe that exposure to small and micro-caps by both institutional and retail investors is lower than it should be. However, with forecasted interest rate cuts and market conditions set to improve, fund managers are anticipating that investors will be looking to significantly increase their allocation to small and micro-cap stocks.

As the economy rebounds, small and micro-cap companies can have a higher growth potential than large-cap companies due to their smaller revenue bases and their agility to capitalize on opportunities. This has historically made them more attractive to investors who are driven by the potential for high returns and greater earnings acceleration in the next 12 months.”

Horizon Aircraft’s Cavorite X7 aircraft will have a gross weight of an estimated 5,500 lbs with a projected useful load of 1,500 lbs. With an anticipated maximum speed of 250 miles per hour and an average range of over 500 miles with fuel reserves, Horizon believes that this experimental aircraft, if eventually licensed for commercial use, would be well-positioned to excel in medical evacuation, critical supply delivery, disaster relief, and special military missions. The Company believes that the proposed aircraft would also be attractive for Regional Air Mobility – moving people and cargo 50 to 500 miles.

Unlike many in its category, the Cavorite X7 is being designed with a hybrid electric power system. The Company is designing the Cavorite X7 such that it could, after its vertical takeoff, re-charge its batteries enroute when it is flying in a configuration like a traditional aircraft. After a vertical landing and completion of a mission, the Company is designing the Cavorite X7 to recharge its battery array in under 30 minutes to be ready for its next mission.

Horizon believes that its innovative approach and technology will allow the Cavorite X7 to fly 98% of its mission in a very low-drag configuration like a traditional aircraft. The Company believes that flying most of the time as a normal aircraft is also safer and will make the aircraft easier to certify than other radical new eVTOL designs. The Cavorite X7 is designed to be powered by a hybrid electric system that will recharge the battery array in-flight and post-flight, while also providing significant system redundancy. The Company is continuing the testing of its 50%-scale aircraft that it believes will reduce technical risk moving forward as it continues to develop its full-scale aircraft.

Notes to Editors
* Horizon Aircraft commissioned the market research company PureProfile to survey 100 small and micro-cap fund managers in the US, Canada, Europe, the Middle East and Asia with collectively $82.4 billion assets under management, to capture their views on the small and micro-cap market. The survey was conducted online in July 2024.

About Horizon Aircraft

Horizon Aircraft (Nasdaq: HOVR) is an advanced aerospace engineering company that is developing one of the world’s first hybrid eVTOL that is to be able to fly most of its mission exactly like a traditional aircraft while offering industry-leading speed, range, and operational utility. Horizon’s unique designs put the mission first and prioritize safety, performance, and utility. Horizon hopes to successfully complete testing and certification of its Cavorite X7 eVTOL quickly and then enter the market and service a broad spectrum of early use cases. Visit www.horizonaircraft.com for more information. Information on the Company’s website does not constitute a part of and is not incorporated by reference into this press release.

Forward-Looking Statements

The information in this press release contains certain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “aim,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result” and similar expressions, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) changes in the markets in which Horizon competes, including with respect to its competitive landscape, technology evolution or regulatory changes; (ii) the risk that Horizon will need to raise additional capital to execute its business plans, which may not be available on acceptable terms or at all; (iii) the ability of the parties to recognize the benefits of the business combination agreement and the business combination; (iv) the lack of useful financial information for an accurate estimate of future capital expenditures and future revenue; (v) statements regarding Horizon’s industry and market size; (vi) financial condition and performance of Horizon, including the anticipated benefits, the implied enterprise value, the expected financial impacts of the business combination, the financial condition, liquidity, results of operations, the products, the expected future performance and market opportunities of Horizon; (vii) Horizon’s ability to develop, certify, and manufacture an aircraft that meets its performance expectations; (viii) successful completion of testing and certification of Horizon’s Cavorite X7 eVTOL; (ix) the targeted future production of Horizon’s Cavorite X7 aircraft; and (x) those factors discussed in our filings with the SEC. You should carefully consider the foregoing factors and the other risks and uncertainties that will be described in the “Risk Factors” section of our Annual Report on Form 10-K filed with the SEC on March 28, 2024 and other documents to be filed by New Horizon from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward- looking statements, and while Horizon may elect to update these forward-looking statements at some point in the future, they assume no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. Horizon does not give any assurance that Horizon will achieve its expectations.

Contacts
Horizon Aircraft Inquiries (PR):
Phil Anderson
Phone: +44 (0)7767 491 519
Phil@perceptiona.com

Investor Contacts:
Shannon Devine and Rory Rumore
MZ Group
Phone: (203) 741-8841
HorizonAircraft@mzgroup.us


FAQ

What percentage of fund managers expect increased institutional exposure to small and micro-cap stocks for HOVR?

76% of fund managers expect increased institutional exposure to small and micro-cap stocks over the next 6-12 months, which could potentially benefit companies like HOVR.

How much do fund managers expect retail allocations to small and micro-caps to increase for stocks like HOVR?

83% of fund managers expect retail investors to increase their allocation to small and micro-caps over the next 6-12 months, with 52% believing the increase could be more than 25%.

What factors might drive increased investment in small and micro-cap stocks like HOVR in 2024?

Anticipated interest rate cuts and improving market conditions are expected to drive increased investment in small and micro-cap stocks, as they often offer higher growth potential during economic rebounds.

How do fund managers describe the current institutional exposure to small and micro-caps for companies like HOVR?

About one-third of fund managers describe the current institutional exposure to both small and micro-caps as being underweight, indicating potential room for increased investment.

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