The numbers are in and it was a sweep for ‘Value’ over the 10 years ended September 30, 2010…
In all four size categories, from small-cap through large-cap, Value funds handily outperformed both‘core’ and ‘growth’ type funds over the whole decade. Growth was the worst place to have been in those 10 years.
It was a ‘small is beautiful’ 10 years as absolute returns grew inversely with the market cap of the holdings. That’s not surprising when you consider how overpriced the big-cap S&P 500 was in 2000 near the top of that market cycle.
Dr. Paul Price
About the author:Dr. Paul Price: After college at The American University [BS - 1971] and dental school at University of Pennsylvania [DMD - 1977] Paul served as a dental officer in the United States Air Force both domestically and overseas in Turkey and England.
In 1987 he made a full-time career switch by joining Merrill Lynch.
Over the next 13 years he also worked with A.G. Edwards, Wheat First [now Wachovia Securities], and Ferris, Baker Watts. Dr. Price had enough success to retire in October 2000 but continues to help friends and family with their investments. He continues to give occasional investment seminars for civic groups and business schools.
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