Active vs. Passive - Small Caps

| June 10, 2018
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How about both?

The debate rages on as to your school of thought: buy and index and set it and forget it to obtain the average return of the index or allocate capital to active managers that are trying to outperform the index.

We say, how about utilizing both options.

Here is an example from Fuller & Thaler Asset Management:

Asset Class: Small Caps

Time Period: 20 Years Ending September 30,2016

Measure: Percent of 3-Year Periods When Median Manager Beat the Benchmark by a Hurdle Rate

Outcome: In the Small Cap space, the Median Managers Beat the Russell 2000 Index by a Hurdle Rate of 0.75% over 86% of the time.

 

Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O

 

Disclosure
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Meyer Capital Group), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Meyer Capital Group. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Meyer Capital Group is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Meyer Capital Group’s current written disclosure statement discussing our advisory services and fees is available for review upon request.

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