‘After several years of underperformance relative to large caps, U.S. Small Caps appear to be entering a new phase.
In our latest white paper, we share our perspective on why we believe the current market environment may be increasingly supportive of active management in U.S. Small Caps, particularly amid elevated volatility, wider valuation dispersion and a renewed focus on company fundamentals.
The paper explores the long-term alpha potential historically observed in U.S. Small Caps, the importance of risk/reward characteristics in portfolio construction, and how previous mean reversion cycles have shaped active management environments over time. It also highlights why quality and valuation discipline remain central in today’s market backdrop.’