Click on the above box to enlarge it, and then give the numbers a quick study.
While 1 and 3 year returns for large-cap growth have gone negative, the fact is since the June 30 update, growth has outperformed value across the large, mid and small-cap asset classes, which was somewhat surprising (to me anyway).
Looking at the annual returns (2nd section, near the bottom) the performance premium for large-cap growth for the 5, 10 and 15 year time frames is still pretty sizable. We can interpret that two ways i.e. large-cap growth will “revert to the mean” over time, or the best companies in the US will continue to gain and maintain “large-cap” status and continue to warrant the performance premium they deserve thanks to their sustainable competitive advantages and their sustainable moats.
Like the good country lawyer once said, “I can argue it either way”.
Looking at the numbers, it isn’t that growth and value aren’t down – all the asset classes and styles are negative – look at large-cap growth since June 30 and then through 9/30 and then look at large-cap value over the same time frame: value fell far more over the 3 months than did growth as a percentage of the June 30 YTD return.
Value is still performing better over the last 9 months clearly.
This update is posted every 6 weeks just to track relative style changes. The next update will be on or about November 15th, 2022.
Thanks for reading.
More blog posts coming over the weekend.