Buying Small Cap Stocks on the Dip and Finding Private Equity Stocks to Buy

On Thursday, investors shifted their attention toward alternative asset managers and small-cap stocks, viewing them as potential rebound opportunities. At the same time, interest in quantum computing is gaining momentum, with some investors exploring how this evolving sector could offer long-term value.

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Apollo Global and Blackstone: Rebound Opportunities in Alternative Asset Management

Storm Uru of LionTrust Asset Management pointed to alternative asset managers Apollo Global and Blackstone as attractive investments, especially since both companies’ shares are trading over 30% below their 52-week highs. Uru believes these names present a compelling long-term growth opportunity.

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According to Uru, the long-term structural outlook for firms like Apollo and Blackstone is particularly strong due to the increasing need for infrastructure expansion—especially in areas like computing power and data centers.

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“There’s a massive demand for capital over the next decade to build out computing and data infrastructure,” Uru noted. “Apollo and Blackstone are uniquely positioned to finance and facilitate this growth.” He also emphasized that the recent drop in share prices over the last three months offers investors a timely entry point into these alternative asset managers.

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Small-Cap Stocks: Undervalued with Potential for Gains

Another area of focus for investors is the small-cap sector. Greg Tuorto of Goldman Sachs remains bullish on the Russell 2000 index, even though it has lagged behind the S&P 500 in 2025. Despite the underperformance, the index has seen positive momentum recently—rising in eight of the past nine weeks.

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Tuorto acknowledged that small caps have been weighed down by a wide array of concerns, including fears about the economy and geopolitical tensions. “Every worry imaginable—from economic growth to tariffs—has taken a toll on small-cap stocks,” he explained.

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However, he believes the tide is beginning to turn. “We’re starting to see inflows return to small caps, and technical analysts are predicting that this could be the start of a more sustained upward move.”

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Among Tuorto’s preferred names in the small-cap universe are Ollie’s Bargain Outlet, Shake Shack, and investment bank Piper Sandler. He sees these as well-positioned companies that could benefit from renewed investor interest and a more favorable market environment.

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Quantum Computing: A Critical Tool for the Next Wave of Software Development

Meanwhile, Robert Smith, CEO of Vista Equity Partners, is paying close attention to the evolution of quantum computing, especially in the context of software development and cybersecurity. Smith argues that quantum computing will be increasingly vital as software becomes more “agentic”—meaning more capable of performing tasks autonomously and interacting dynamically with users.

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“When users begin relying on multiple intelligent agents, we dramatically increase the number of potential vulnerabilities,” Smith said. “Each agent becomes a new point of entry for cyberattacks, and that requires new ways to secure digital environments.”

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To address these new challenges, Smith sees quantum encryption as a breakthrough technology that can offer advanced protection for these digital agents. “We’re already working on two key phases,” he explained. “In one case, we’re developing quantum-based defenses within virtual machine environments. In another, we’re focusing on protecting individual agents operating in specific contexts.”

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Smith emphasized that these initiatives are already underway in collaboration with specialized partners. “We’re not talking about distant future concepts—these are solutions we’re actively developing today,” he said.

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Summary

In summary, Thursday’s investor focus highlights three distinct themes:

• Alternative asset managers like Apollo Global and Blackstone are drawing attention due to their potential to finance the large-scale infrastructure demands expected over the next decade. Their recent pullbacks in stock price provide an opportunity for value investors to enter.
• Small-cap stocks, while historically under pressure, appear to be staging a comeback. With signs of capital inflows and technical strength, names like Ollie’s Bargain Outlet, Shake Shack, and Piper Sandler are emerging as top picks in the space.
• Quantum computing is being viewed not just as a futuristic technology, but as an immediate solution for complex cybersecurity needs. As autonomous software agents proliferate, protecting them from growing cyber threats will require innovations like quantum encryption—a field already being actively explored by leading investment firms like Vista Equity Partners.

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These developments signal a broadening of investor interest beyond mega-cap tech stocks, as capital seeks out new areas of growth and innovation in a shifting economic and technological landscape.

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