The Small-Cap Bull Market Has Legs

0
The Small-Cap Bull Market Has Legs
By User:klip game (Own work) [Public domain], via Wikimedia Commons

Chuck Royce discusses the small-cap market today and why he believes the transition from growth to value will continue.

Watch the video here.

Small-Cap Bull Market

Francis Gannon: We’ve had a really interesting year in the market so far. We completed a bear market in February, and we have gone on to what we’ve called a stealth bull market, really since the low in February of this year, with the market up some 30%. What are your thoughts on the market, the small-cap market today?

Qualivian Investment Partners July 2022 Performance Update

stocks performance 1651757664Qualivian Investment Partners performance update for the month ended July 31, 2022. Q2 2022 hedge fund letters, conferences and more Dear Friends of the Fund, Please find our July 2022 performance report below for your review. Qualivian reached its four year track record in December 2021.  We are actively weighing investment proposals. Starting in November Read More

Chuck Royce: This is a really important point. We did have a major correction from June of last year through February, a big correction, 25% plus. This is one of the top ten corrections over the last 25-30 years.

[drizzle]

I don’t recall a single commentary in the major press about small-caps doing that poorly for that period of time. It certainly affected us. It affected our 2015 performance.

But there was a shift starting in the mid-year to from growth, which has been straight up for six years, to less emphasis on that. Biotechs had a bubble.

And certainly this year with a very strong emphasis in the first quarter the leadership has shifted to value. And this is the most important thing. So in addition to having probably a much longer run ahead of us, 30% is probably not going to be the extent of this bull market in small-caps. I think it will be closer to 80-10