Money Managers Hot on Cool Large Caps

Large cap growth funds haven’t been performing as well as their smaller brethren, but that hasn’t stopped money managers from being bullish on them.

Large cap growth funds haven’t been performing as well as their smaller brethren, but that hasn’t stopped money managers from being bullish on them. The last Russell Investment Group survey found that 70% of managers were hot on large caps, compared with 63% for mid-caps and 57% on non-U.S. equities. Randy Lert of Russell explains their bullishness, saying, “Over the past decade, the Russell 2000 Value Index has outperformed the Russell 2000 Growth Index significantly outside of historical norms, and investment managers believe that such a level of disparity between market segments may not be sustainable.” Overall, two-thirds of money managers say the U.S. stock market is fairly valued.