{"id":19142,"date":"2026-01-06T18:22:45","date_gmt":"2026-01-07T00:22:45","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=19142"},"modified":"2026-01-06T18:22:45","modified_gmt":"2026-01-07T00:22:45","slug":"style-box-update-small-cap-value-outperforming-small-cap-growth-hasnt-happened-since-2022","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=19142","title":{"rendered":"Style-Box Update: Small-Cap Value Outperforming Small-Cap Growth – Hasn’t Happened since 2022"},"content":{"rendered":"

\"\"<\/a><\/p>\n

(Click on spreadsheet to enlarge)<\/p>\n

Readers know that every 6 weeks, the “style-box” update is posted to this blog.<\/p>\n

What’s interesting about the 12\/31 data is that – for the first time since 2022 – “value” has started to outperform “growth”, and it’s started in the small-cap asset class.<\/p>\n

Look at the third section down in the above spreadsheet and note how “small-cap value” has outperformed small-cap growth since 11\/15\/2025.<\/p>\n

Again, “growth” has smoked “value” for the last 12 quarters in terms of total return and growth beat value across all three asset classes (large-cap, mid-cap and small-cap) for those twelve quarters, until this last quarter of 2025. In the 6 years from 2020 to 2025, value only beat growth during the Covid-afflicted years of 2021 and 2022.<\/p>\n

Is it a meaningful shift ? Don’t know yet. Does it portend a broader change in style performance for the broader equity market ? Don’t know yet.<\/p>\n

But, growth has outperformed for a long period of time, without value beating the growth returns, until this last quarter in small-cap.<\/p>\n

It certainly bears watching, particularly as commodities are really heating up, including the oil and gas sector after the Venezuela events of last weekend.<\/p>\n

International had a breakout versus the US in 2025.<\/p>\n

All this is evidence of the shifting landscape in the broader equity market performance picture.<\/p>\n

Summary \/ conclusion:<\/strong><\/em> Again, it’s probably too early to draw a conclusion that would warrant a tectonic shift in portfolio positioning towards small-cap value,\u00a0 but the growth outperformance trend may be starting to wane, which could impact the major indices like the SP 500 and Nasdaq.<\/p>\n

Another update will be forthcoming in mid-February ’26.<\/p>\n

None of this is advice or a recommendation but only an opinion. Past performance is no guarantee of future results. This data will likely be updated around mid-February ’26.<\/p>\n

Thanks for reading.<\/p>\n","protected":false},"excerpt":{"rendered":"

(Click on spreadsheet to enlarge) Readers know that every 6 weeks, the “style-box” update is posted to this blog. What’s…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[142],"tags":[],"class_list":["post-19142","post","type-post","status-publish","format-standard","hentry","category-style-analysis"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/19142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19142"}],"version-history":[{"count":6,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/19142\/revisions"}],"predecessor-version":[{"id":19149,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/19142\/revisions\/19149"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}