Don't understand exuberance in smallcaps; why chase exotic fruits when these might poison you, says Safir Anand

economictimes.indiatimes.com:

Safir Anand, Strategist & Investor, says you have to find the right companies in the market. And when you have the wrong company, you have to move out. You have to be ruthless on both sides. I do not understand certain pockets of exuberance in smallcaps. There are companies where even basic information appears to be lagging. There are viral stories on social media about these companies and how their stock prices have appreciated. There is hardly any talk in terms of business. If somebody says that the stock is up 80%, but does not talk about the business, then what are you looking at? "

How are you looking at the furious momentum that we witnessed within the broader markets? Of course, that patch has cooled off now but what is that sensing or what is that indicating rather, the way we saw that outperformance within the broader universe?
The definition of outperformance is also relative.

It could be an outperformance in the last one year or the last few months. It could be a relatively mediocre or a middle-level performance if you were to consider two or three years because there was a meaningful correction in mid-caps and small caps. The question, essentially, is very company-focused because if the companies are doing well and they are cleaning up and getting bigger orders and then moving up in terms of value change, then if you are a long-term investor, you may have some corrections in the market, like the market has corrected maybe 3% or 4%, which really is not much of a correction.