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Small Cap Funds Are In A Lull

FYI: The average small-cap fund has clobbered its large-cap counterpart and the S&P 500 in the past 15 years, but it's failed to keep its lead in the stock market this year.
Regards,
Ted
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Comments

  • My handful of US small cap funds spent most of last year leading all my funds. This year they're all at the bottom, and amazingly the best one, in the top 15% of small growth funds, has lost money this year. Ugh! I can't complain based on the longer term record, but its one of those difficult years so far for small caps.
  • edited August 2014
    Hi LLJB,

    Currently, my small/mid cap sleeve is up ytd 2.72% with one fund (IIVAX) in the red at -0.25% the other two funds (PCVAX & PMDAX) are up 2.11% & 4.30% respectively. I recently sold KSDVX, at a good profit, with the sale proceeds now parked as cash ballast within my demand cash sleeve awaiting future investment deployment.

    Old_Skeet
  • edited August 2014
    Here's my 2 cents: I took sizable small-cap profits after the New Year. That's when I look to take advantage of the kind of outperformance the small-caps showed in 2013. I redeployed the profit into one of my core, anchor funds: from MSCFX into MAPOX. 2013 was indeed a good small-cap year.

    Just today, MSCFX is 2.41% of portfolio and Vang. small-cap is 0.74% of portfolio. That's 3.15%. YTD, MSCFX is up 0.86%. (In top 12% of category) and NAESX is up 0.84%. At the moment, wonderful Morningstar is recalculating its percentile performance among small-cap peers. I guess they are "holding their own."
  • I have had some SC funds that I have really liked (for their for the most part consistent outperformance) such as FSCRX, BCSIX, WSCVX, and EISMX (Mid/Small). I am holding on to FSCRX (its av. PE is <16!) and probably will be holding on to EISMX, have trimmed some BCSIX and a little WSCVX. BCSIX seems to be more "growthy" and suffers momentarily the most. But I don't want to overdo it because of tax consequences. Essentially, for the long term I still like all four of them. And my plan, to increase Large Cap in the present situation, I can easily achieve with the cash I have kept for such opportunities in all my accounts.
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