• Has the Value Trend Reversed?  

    A year ago, we posted this piece showing the wide gap between the returns of the Russell 2000 Growth (RUO) and Value (RUJ) indices. At the time, RUO’s relative outperformance was approaching two standard deviations above average, measured on a rolling 52-week basis. The gist of the post was that it was a large difference, but not abnormal, with the implication that the trend should reverse, but not sure when. With another year of data, we can see how things have played out.

  • Is LeBron’s Consistency Undervalued?  

    Is LeBron’s Consistency Undervalued?

    March 06, 2019
    Brian Harvey & Aditya Bhave

    There are many parallels between sports and investing. Our recent blog raised the question as to whether LeBron James has lost focus since joining the Lakers and his comments about his team’s need to be more consistent. The blog raised some good questions about fund managers (e.g., do managers with historically good performance get a pass on future underperformance, etc.) and made us wonder if LeBron’s on-court performance has been consistent with year’s past.

  • Should Investors be Deterred from Small Caps?  

    In our latest Wall Street Mood Monitor™, Chief Investment Officer John Riddle, highlights the decidedly negative sentiment on Wall Street as part of our three-factor model of revisions, earnings trends, and correlations. Here, we take a deeper look at revisions, specifically within the small cap universe.

  • Revisiting Revisions  

    In January, we discussed how analyst sentiment was at a six-year high as of the end of 2017. Here, we take a look at the small cap universe and see if that feeling has endured, or if analysts have reined in their expectations.

  • Is Value Valuable  

    Lately, Value has not been very valuable within small cap stocks. Save for a couple of weeks last December, the Russell 2000 Value Index (RUJ) has underperformed its Russell 2000 Growth Index counterpart (RUO) on a rolling 13-week basis since February 2017.