Insight
Go Time? The Case for Small-Cap Value
This paper reviews the strategic importance of U.S. small-cap value equities for capital accumulation. We explore the historical record for allocations surrounding recessions and offer insight on relative valuations.
Authors
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John Krueger
5/11/2023
10 min read
Topic
Equities
Key takeaways
- Among major U.S. equity categories, small-cap value allocations have delivered the highest returns over the long run and an indispensable means to accumulate capital.
- Our research shows that small-cap value returns have consistently dominated other U.S. equity styles in the years following recessions.
- Small-cap value equities currently offer attractive valuations relative to other U.S. equity categories and refreshing levels of breadth compared to U.S. large caps.