Style Box Update: Small and Mid-Cap “Value” Closes Performance Gap vs Growth

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“Value” hasn’t significantly outperformed “Growth” since 2016 and even then it was only for a year or so.

Is now the time where Value investing comes back in vogue ?

Small and mid-cap value sub-sectors are starting to perform better relative to growth. For large-cap, the Growth out-performance is still material (i.e. 200 bp’s YTD as of 5/10/19).

Here is the early April ’19 Style Box Update and then the mid-February ’19 update.

Summary / conclusion: The consistent theme for the first 4 – 5 months of 2019 is that small and mid-cap value have been narrowing the performance differential over growth, but it’s been a slow transition.  The last decent correction that ended in Q1 ’16 saw large-cap growth outperform substantially. With the correction of Q4 ’18, perhaps now value starts to reassert itself.

Thanks for reading.

 

 

 

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