Perhaps traders should be paying more attention to the bearish small-cap
"Possible reasons why small-caps
may not have the same degree of additional compensation for risk as seen with mid-caps include investors' willingness to pay a premium price for the possibility of a "home run" small-cap
investment, and also the possibility that small-cap
dedicated strategies have grown too large relative to the size of that market," he said.
However, it unexpectedly removed Honda Atlas Cars and Maple Leaf Cement from the MSCI Global Small-Cap
Index, according to the Geneva-based firm's November 2018 semi-annual equity indices review results announced in early hours (according to Pakistan time) of Wednesday.
Many thought that US small-cap
stocks, given their domestic focus and relatively high effective tax rates, were particularly well positioned to benefit from corporate tax reform, one of the major planks of the Republican Party platform.
"We feel that there is a real opportunity in the small-cap
space for an active manager to be able to add value and perform for clients," Cooper told ThinkAdvisor.
rents surged during the first quarter as small-property landlords benefited from extremely tight markets, according to Boxwood Means, Stamford, Connecticut.
The report went on to say that the three stock indicators ended last week with large losses in parallel with the grouped declines recorded by the GCC stock markets during the week, as the negative impact is still controlling the trading activities among decreased investors' confidence and noticeable decline in the trading activity, whereas the market was subject to a strong trend of selling for profit operations, concentrated on large-cap and small-cap
30 June 2015 - US-based investment management holding company Emerald Asset Management, Inc.'s Emerald Mutual Fund Advisers Trust subsidiary has completed the acquisition of the former Elessar Small-Cap
Value Fund into the new Emerald Small-Cap
Value Fund, the company said.
While most tax-saving funds invest big time in small-cap
and mid-caps, some overload the portfolio with these stocks, making returns volatile.
Fund managers and analysts warn that small-cap
stocks already trade at valuations high above long-term averages, even after significantly lagging large-company shares in 2014.
However, the return premium to small caps is unstable and fleeting, and due to a recent string of poor quarters, small-cap
companies as a group today stand at a return disadvantage.
WHILE LARGE-CAP companies gain more support from their smaller counterparts, a new report revealed that shareholder endorsement of executive compensation plans has declined in 2014 at mid-cap, small-cap
and micro-cap companies.
THE idea of a small-cap
premium goes back to 1981, when Rolf Banz stated: "In the 1936-1975 period, the common stock of small firms had, on average, higher riskadjusted returns than the common stock of larger firms."
* In the U.S., the small-cap
Russell 2000 Index (2.0 percent) outpaced the large-cap Russell 1000 Index (1.3 percent) year-to-date, after outperforming by more than 5 percent in 2013.