Journal
Liquidity floors that actually protect a small-cap book
Why average daily value thresholds belong in the intake form, not as an afterthought once the shortlist is already loved.
Momentum maps fail quietly when the shortlist cannot be traded at the size the client needs. Liquidity floors feel dull compared with breakout narratives, yet they decide whether a briefing is usable.
Agree the floor before ranking
We ask for average daily value thresholds at intake. A private book that rarely exceeds £50k tickets can work with a lower floor than a discretionary desk deploying seven-figure sleeves. Pretending one floor fits both clients produces pretty tables and awkward exits.
Watch corporate event limbo
Names suspended, in protracted offer situations, or awaiting capital restructurings can print misleading strength when they resume. We flag event limbo even when liquidity looks adequate on paper.
Revisit after the session
Liquidity changes. A name that cleared the floor in March may not in August. Clients who return each quarter get a fresh filter pass, not last season’s spreadsheet with new dates.