Small Cap
Small Cap Biotech Getting Pricey Again
In May 2015, we warned about rich valuations for small cap Biotech stocks and looked at various ways to evaluate those companies, as the majority have no approved drugs on the market, thus no revenue; therefore, valuing these companies using the conventional methodology is problematic.
Stock Market Defies Seasonal Gravity
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“That which does not kill us, makes us stronger” might be a good motto for this never-ending bull market. The bull continues to shrug off the effects of both Quantitative Tightening and an escalating trade war, and it’s doing so during a seasonal stretch in which many of its predecessors have sunk to their knees (if not their demise).
Rates Are Up, But Are They High Enough To Punish?
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While momentum has been the best-performing stock selection factor in 2018, there’s a less well-known and purely fundamental factor that rates almost as well: A company’s ability to lose money!
Small Cap Valuation Check
We don’t have a strong capitalization-bet recommendation, other than to remind readers that Small Caps have been especially responsive to the favorable seasonal window that began November 1st (and which extends through April 30th).
Small Caps Surrender Their "Trump Bump"...Now What?
With this week’s losses, Small Caps have relinquished all of the massive outperformance they enjoyed in the month following the presidential election.
Active Vs. Passive Return Drivers
Our July special report “Active vs. Passive: A Three-Club Headwind” studied the recent dominance of passive indexes over actively managed funds.
Small Cap vs Mid Cap vs Large Cap
The Ratio of Ratios bounced off last month’s multi-year low (4% Small Cap discount) but still sits firmly below its Small Cap median, which is a premium of 4%.
Small / Mid / Large Cap
The August market action deflated P/E ratios across all market cap tiers, but our ratio of ratios was little changed.
Small Cap/Mid Cap/Large Cap
Nudged higher by Small Cap outperformance in May, our premium is little changed month-over-month and remains in its new 5-10% habitat.
Small Cap/Mid Cap/Large Cap
Small Cap Premium Plunges To 5%
Small Cap vs Large Cap
Small Cap Premium A Tick Higher To 16%
Small/Mid/Large Cap
Small Cap Premium Sinks To 15%
Small Cap vs Mid Cap vs Large Cap
Small Cap Premium Spikes Back To 20%
Small/Mid/Large Cap - Small Caps Experience Worst Monthly Return Since May 2012
In September, the Russell 2000 index lost 6% and is down 4.4% YTD. Large Caps widened their YTD performance lead (S&P 500 +8.3%). Small Cap Premium slides to 15%.
Small Cap/Mid Cap/Large Cap
Small Caps are selling at a 19% valuation premium relative to Large Caps.
Small/Mid/Large Cap
Small Cap Premium Slumps To 17%
Why Are EM Small Caps & Frontier Markets Outperforming?
Emerging Market investors are extending their “small” bet down to Small Caps and the Frontier Markets. We discuss potential reasons behind their outperformance.
A Milestone You Might Have Missed
The fifth anniversary of the bull market was met with fanfare, but the launch of the Large Cap leadership cycle in April 2011 is receiving no attention whatsoever.
Stock Market Leadership In 2014: Large Caps, Tech, Health Care
Following a great year for trend-following, capitalizing on key reversals in sector performance will be important in winning the 2014 performance derby.
Small Cap Cycle Extension?
Small Caps have an historically high P/E premium of 15% vs. Large Caps. This premium could go higher, but we’d be reckless to call for a long-term extension of Small Cap leadership given this premium.
Perception for the Professional
March 2026 Issue
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March 2026 Issue
