Stone Fox Capital's  Instablog

Stone Fox Capital
Send Message
Stone Fox Capital Advisors is a registered investment advisor founded in 2010. The firm offers portfolio management with a focus on opportunistic stocks providing secular growth trends at an affordable value. An emphasis is placed on fundamental analysis though charts are used for timing entry... More
My company:
Stone fox capital
My blog:
Out Fox The Street
  • Russell 2000 Weakness 0 comments
    Nov 24, 2009 4:20 PM | about stocks: AER, IWM

    Since late September, the Russell 2000 has been particularly weak. The index of small cap stocks made a slightly higher high in mid October, but hasn't come close to the 625 high in November while the S&P500 continues to trade above the Sept/Oct levels.

    Part of the reason could be that a lot of the smaller cap stocks are more domestic plays and the more international exposure you have the better. Its also been the case that financial stocks such as regional banks have been weak during that period. Regardless its led our Growth Portfolio to underperform the last month after a huge outperformance this year - up nearly 70%.

    A lot of the smaller investments such as Liz Claiborne (LIZ) have been hit hard after surging. LIZ is down from a high around $7.5 all the way to $4.5. Many other examples exist as well.

    Hard to explain why the smaller stocks have been so weak with the world economy showing signs of growth. They should do better in a recovering economy. Maybe people were just fearful they'd run too far, too fast. Though we've got examples of stocks like AerCap (NYSE:AER) that trades at a PE of 4. Hard to argue why that stock would remain at such a compressed multiple no matter how far it has run since the bottom. Most of the small caps fell too far, too fast as well.

    For now we're keeping our bets on the Russell 2000 sector. In most cases, they still appear to have the cheapest valuations even considering the YTD gains and any risk of further economic risk.

    Stocks: AER, IWM
Back To Stone Fox Capital's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • crossed 5,000 followers today... thanks to everybody that follows and reads my articles.
    Mar 29, 2016
  • too much doom and gloom for a market crash.
    Jan 10, 2016
  • wow... Cramer slammed an SA $FCX article from last Dec. Guess a good sign that he views this site worthy of reviewing.
    Dec 10, 2015
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.