Will Trump Make Active And Small Caps Great Again?

With small cap stocks significantly outpacing the performance of large caps since the election of Donald Trump, should investors consider looking for small cap opportunities? A Bank of America Merrill Lynch report notes that small cap stocks have been a better fit for active managers as they pull together the Endeavor model to combine fundamental and quantitative portfolio building techniques.

Small cap stocks are up on average over 11.4% each year since 1926, while large caps are up 9.5% on average but with lower volatility

Small cap stocks, up an average of 11.4% since 1926, have a history of generating higher returns than large caps, up 9.5% over a...