The Secret Behind My 1,000% Small Cap Winner  | | Robert Ross
Speculative Assets Specialist | Have you made money in small caps over the last year? And no, I don't mean by buying a small cap index like the Russell 2000. I mean by actually getting into the weeds of smaller companies and finding gems before anyone else. My Breakout Fortunes subscribers have had a lot of success in this space in the last year. In fact, we've closed six triple-digit gains in our portfolio in the last year. But my best-performing small cap came at last year's Investment U Conference. While most of my February 2024 presentation centered around my outlook for crypto, I made sure to give our non-crypto audience a stock pick. The company I pitched - Rigetti Computing (RGTI) - was a small quantum computing company. And from when I recommended it to our audience to the start of 2025, the company's stock surged over 1,000%. 
View larger image To put that into perspective, a 1,000% gain turns a $10,000 investment into $110,000. That's the kind of life-changing return that small caps can deliver... But only if you know where to look. How I Find Top-Performing Small Caps Rigetti was a perfect example of an under-the-radar stock with massive upside. At the time, it was a beaten-down quantum computing company trading for pennies on the dollar. Most investors ignored it. But I saw a catalyst on the horizon - a growing need for quantum computing advancements, improving financials, and a broader AI-driven tech rally that could lift quantum stocks. Fast forward to the start of 2025, and Rigetti had delivered a 10X return. The best part? This wasn't a one-off. Our small-cap strategy has been delivering big wins since we launched the service a few years ago. This includes putting other winners like Oklo (OKLO) on our subscribers' radar months before retail piled in... 
View larger image And the framework I used to find both Rigetti and Oklo is easily replicable. My Three-Pronged Small Cap Approach Finding small caps with explosive upside isn't about luck - it's about identifying stocks that check all three of my core criteria... The first is a stock's narrative. The stock market is driven by narratives, and small caps are no exception. AI, quantum computing, robotics, and other high-growth sectors tend to attract speculative hype, often sending valuations soaring. I look for stocks aligned with these narratives because, whether or not the company is profitable today, the market rewards potential. Rigetti was a perfect example. Quantum computing has long been considered a "future technology," but with AI advancements accelerating, quantum suddenly became a hot topic. Investors realized companies like Rigetti could be key players in the next evolution of computing, and the stock took off. Second on my list is what I call new merchandise. One of the biggest mistakes small-cap investors make is sticking to last cycle's winners. But history shows that fresh IPOs and recent spinoffs - what I call "new merchandise" - are far more likely to explode higher than legacy small caps. Why? Because the market loves a new story. Whether it's a company that just went public or one that's breaking out after years in obscurity, these stocks capture fresh attention and institutional interest. Rigetti, having IPO'd in 2022, fit the bill perfectly - still largely underfollowed, yet positioned in one of the hottest sectors. Lastly - but certainly not least-ly - is strong technicals. Even the best narrative stocks need momentum. I focus on small caps that have rallied post-election and have held onto their gains. Many small caps see a quick pump before fading - what I want is sustained strength. With Rigetti, we saw massive buying pressure as the AI and quantum computing hype cycle heated up, but more importantly, the stock held onto its gains, showing real investor conviction. That's a crucial indicator that a stock isn't just a short-term trade, but a potential multi-bagger. Why This Matters Now This strategy isn't just about past wins - it's about finding the next Rigetti before it takes off. The Trump administration's regulatory relief, a dovish Federal Reserve rate cut, and continued AI enthusiasm mean small caps are primed for another leg higher. We're already seeing it play out. Stocks in AI, automation, and defense tech are moving. If you wait until these stocks are making headlines, you're already too late. That's why, in my next issue, I'll be breaking down the small caps I believe could deliver 500%, 1,000%, or even higher returns in 2025. Because if you want big gains, you need to position early - just like we did with Rigetti. Small caps aren't for everyone. They're volatile, speculative, and require a strong stomach. But if you follow my three-pronged approach, the upside can be life-changing. Stay safe out there, Robert Want more content like this? | | | | | | 
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