Historic Small Cap Volatility

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Bespoke Investment Group
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Summary

  • The trailing twelve-month performance spread between the small-cap growth and large-cap value indices is currently at -20.5 percentage points.
  • This year’s trailing twelve-month performance spread was the lowest since 2001.
  • Small-cap growth stocks tend to trade at significantly higher valuation multiples than large-cap value stocks, which is part of the reason that small-cap growth equities have sold off at a higher rate than their counterparts.

Small Cap write on sticky notes isolated on Office Desk. Stock market concept

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It’s no secret that growth stocks have underperformed value stocks over the last twelve months. The trailing twelve-month performance spread (percentage points) between the small-cap growth and large-cap value indices, two opposite ends of the equity market, is currently at -20.5 percentage points. Although

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Bespoke Investment Group provides some of the most original content and intuitive thinking on the Street. Founded by Paul Hickey and Justin Walters, formerly of Birinyi Associates and creators of the acclaimed TickerSense blog, Bespoke offers multiple products that allow anyone, from institutions to the most modest investor, to gain the data and knowledge necessary to make intelligent and profitable investment decisions. Along with running their Think B.I.G. finance blog, Bespoke provides timely investment ideas through its Bespoke Premium (http://bespokepremium.com/) subscription service and also manages money (http://bespokepremium.com/mm) for high net worth individuals. Visit: Bespoke Investment Group (http://bespokeinvest.com/)

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