Right now, bond markets are front of mind for investors everywhere. Sticky inflation and ballooning budget deficits are pushing yields higher, and with the RBA looking likely to hike rates once again and the domestic economy under pressure, the question isn't just which stocks look cheap, it's which ones can actually hold up when the cost of capital keeps rising. Small caps are particularly exposed in this environment and get hit harder when sentiment turns. But within this universe, there are always names with the earnings quality, balance sheet strength, or structural tailwinds to hold their ground. To find which ones can weather the storm, Matthew Nicholas from 1851 Capital and Nick Sladen from LSN Capital Partners are running the ruler over four small caps, and sharing a high-conviction pick each of their own.

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