One financial expert is going against the status quo and picking unprofitable small-cap companies he believes will pay off in the long run.

Speaking with BNN Bloomberg's Amber Kanwar on Tuesday, David Barr, chief executive officer and portfolio manager at PenderFund Capital Management Ltd., spoke of the opportunities investors found amid the 2000-2004 dot com market crash and the stocks he thinks show that same promise today.

“Those businesses that actually had revenue and drove toward profitability were the ones where you found the really big returns coming out of the dot com boom and subsequent crash,” he said.

Barr recommended Copperleaf Technologies Inc. (CPLF), WeCommerce Holdings Ltd. (WE.V) and Thinkific Labs Inc. (THNC) as his three hot picks in the small-cap space.

He, his family members do not own any of the stocks mentioned above, however his firm and investment banking clients hold all three.

Check out the full video at the top of the article to learn more.