Small Results for Small-Cap Managers

June 2003
Journal of Financial Planning;Jun2003, Vol. 16 Issue 6, p20
Academic Journal
This article focuses on the findings of a study conducted by Standard & Poor's (S&P) in the U.S. in 2003, which dispute the contention that actively managed small capitalization funds, unlike other types of equity funds, can outpace their index. The research, which took into account liquidated funds as well as survivors, found that only a third of small-cap managers outperformed the S&P SmallCap 600 Index over the past five years ending September 2002. That percentage is even lower than the 37 percent of managers of large-cap funds who beat the S&P 500 Index. Higher costs for actively managed funds was the principal reason cited for the shortfall.


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