By SIMON CONSTABLE
Small-capitalization “value” stocks have been among the market’s worst performers this year. But the sector might be well positioned to outperform the broad market when the economy begins to recover from Covid-19 lockdowns, some analysts say.
In the first quarter of this year, the Fama French U.S. Small Value Index, which tracks the small-cap value sector, recorded the worst quarterly performance in its 94-year history. It dropped 41.5% in the three months through March 31, compared with a 19.6% decline for the S&P 500 over the same period, according to data from asset-management firm Verdad Advisers in Boston. Like large-cap stocks, small-caps have regained ground in the weeks since then, but small-cap value stocks are still among the market’s biggest losers for the year to date. Read more here.
Small-capitalization “value” stocks have been among the market’s worst performers this year. But the sector might be well positioned to outperform the broad market when the economy begins to recover from Covid-19 lockdowns, some analysts say.
In the first quarter of this year, the Fama French U.S. Small Value Index, which tracks the small-cap value sector, recorded the worst quarterly performance in its 94-year history. It dropped 41.5% in the three months through March 31, compared with a 19.6% decline for the S&P 500 over the same period, according to data from asset-management firm Verdad Advisers in Boston. Like large-cap stocks, small-caps have regained ground in the weeks since then, but small-cap value stocks are still among the market’s biggest losers for the year to date. Read more here.
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