Why Investors Should Keep An Eye on Small Cap-Stocks
Historically, high index concentration implies high expected size premium.
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Historically, high index concentration implies high expected size premium.
Opinion Why small cap investing has underperformed over the past decade - and what Canadian investors can do about it Published December 16, 2020 Bookmark In theory, an investment strategy with a focus on small cap and value stocks should result in returns superior to the major market indexes. After all, smaller companies have greater flexibility to respond to opportunity or adversity and their growth runway is much longer once they have a winning product or service. Plus, a screen for value should reduce the negative impact of torpedo stocks that can unexpectedly blow a hole in the por...