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.

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10 min read



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.