The ASX small-cap share space is not one that many investors hunt for opportunities. It can be seen as riskier and more volatile. But, the medium-term returns could be market-beating, if we choose wisely.
The risks are certainly higher, the lower down the market capitalisation list you go. Brand power isn't that strong and balance sheets haven't developed to their full potential.
WAM Microcap Ltd (ASX: WMI) is one of the funds that's focused on finding some of the most exciting opportunities at the small end of the market. The LIC recently highlighted two ASX small-cap shares in the portfolio that are exciting opportunities.
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Duratec Ltd (ASX: DUR)
WAM described Duratec as a specialist infrastructure services company providing remediation, protection and energy services across civil, marine, mining and defence sectors.
The fund manager noted that Duratec's share price increased in March, supported by continued positive momentum after the release of the FY26 half-year result.
Duratec reported solid earnings in line with expectations, reinforcing investor confidence in its growth outlook and driving upward revisions to earnings forecasts.
Momentum was further supported by the award of a $45 million contract in Papau New Guinea (PNG) which was announced towards the end of March 2026. This highlights the ongoing expansion of the business.
WAM said the rising Duratec share price performance during the month reflected investor confidence in Duratec's earnings trajectory, project pipeline and execution capability, as well as the ASX small-cap share's exposure to resilient customer markets such as the defence sector.
Autosports Group Ltd (ASX: ASG)
WAM described Autosports as a motor vehicle dealership operator and provider of automotive services, focusing on the luxury and prestige segment.
The Autosports share price declined in March, reflecting market weakness across interest rate-sensitive stocks maid ongoing interest rate uncertainty.
On top of that, as part of the free trade agreement between Australia and the EU, which was signed on 24 March 2026, the luxury car tax threshold was increased for electric vehicles only, despite wider expectations that it would be completely abolished for all vehicles.
WAM believes that the March pullback does not reflect a deterioration in the company's strategic position.
The fund manager concluded its commentary on the ASX small-cap share by saying the team still view Autosports Group as well-placed to execute on strategic mergers and acquisitions in a highly fragmented industry.
