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Microcap lead not because of their size but because of biotech
He's looking at seven weeks' performance. Wouldn't it be fairer to describe "the current micro-cap hiccup"?
I looked at the 10 best-performing microcaps, YTD, which overweight healthcare. Collectively, they earn just under 3 stars with only one standout (Lord Abbett Microcap Growth), The 10 best-performing microcaps, YTD, which underweight healthcare collectively earn just over 3 stars with only one standout (Buffalo Emerging Opps). That review includes only funds which have been around long enough to earn a star rating.
I believe the discussion was about the very recent (like 2-3 months) effect. For example, FBIOX is up 23% during the last 2 months (about 25% after today's close).
One can see definite correlation between the general healthcare (red line), FBIOX (blue line) and Lord Abbett Microcap Growth (yellow). Almost no correlation with MXCI World (green line).
I quite agree: the discussion was about a YTD divergence. The question is: why have the discussion? Intellectual curiosity would be a fine answer, but that's not typical of what gets folks to write hot fund articles.
Comments
He's looking at seven weeks' performance. Wouldn't it be fairer to describe "the current micro-cap hiccup"?
I looked at the 10 best-performing microcaps, YTD, which overweight healthcare. Collectively, they earn just under 3 stars with only one standout (Lord Abbett Microcap Growth), The 10 best-performing microcaps, YTD, which underweight healthcare collectively earn just over 3 stars with only one standout (Buffalo Emerging Opps). That review includes only funds which have been around long enough to earn a star rating.
David
I believe the discussion was about the very recent (like 2-3 months) effect. For example, FBIOX is up 23% during the last 2 months (about 25% after today's close).
One can see definite correlation between the general healthcare (red line), FBIOX (blue line) and Lord Abbett Microcap Growth (yellow). Almost no correlation with MXCI World (green line).
I quite agree: the discussion was about a YTD divergence. The question is: why have the discussion? Intellectual curiosity would be a fine answer, but that's not typical of what gets folks to write hot fund articles.
I was just being a fuddy duddy about it.
David