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Lewis Braham: 3 Small-Cap Value Stocks That Could Be Worth The Wait: (ASVIX)
FYI: One of the most important qualities of being a value investor is patience. Value stocks often produce “lumpy” returns—doing nothing or even declining for long periods before experiencing prodigious rallies. This has been especially so lately for much-ignored small-cap value stocks.
In the past three years, large-cap growth stocks in the Russell 1000 Growth Index have produced strong 16.9% annualized returns versus a meager 6.5% for small-cap value companies. Yet academics have found that small-value stocks beat more popular growth ones if you can wait out the fallow periods. Jeff John, senior manager of the American Century Small Cap Value fund (ticker: ASVIX), employs a quality tilt—favoring companies with strong balance sheets and consistent free cash flow—to improve his portfolio’s results in the meantime. Regards, Ted https://www.barrons.com/articles/3-small-cap-value-stocks-fund-51572397443?refsec=funds
