I don't own Chico's Fashion but it looks like a solid stock. As long as you are in a position to understand it and follow it. You can do very well with small caps when you can keep an eye on the actual business. Or you can get creamed if you don't really understand the business.

I don't know if they're technically smallcaps but I own JAKK, HOTT, FOSL, TOPP, PPD, PIXR and FUN.

And according to Delilama's profile, he owns "mostly HOTT, but also JAKK, GTNR, CROS, and little ACY".

All other things being equal, though, large caps are preferable. If two companies are completely identical in valuation, growth, debt, margins and efficiency, favor the larger one. But if you see a great small company that the street hasn't picked up on yet, carefully chosen high quality small caps can do very well for you.