With small cap stocks significantly outpacing the performance of large caps since the election of Donald Trump, should investors consider looking for small cap opportunities? A Bank of America Merrill Lynch report notes that small cap stocks have been a better fit for active managers as they pull together the Endeavor model to combine fundamental and quantitative portfolio building techniques. Small cap stocks are up on average over 11.4% each year since 1926, while large caps are up 9.5% on average but with lower volatility Small cap stocks, up an average of 11.4% since 1926, have a history of generating…
Will Trump Make Active And Small Caps Great Again?
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.