The chart above depicts rolling three-year return differentials between Small-Cap and Large-Cap stocks since the 1920s. Returns above zero indicate periods where Small-Cap outperforms Large-Cap; returns below indicate the reverse.
Over the long run, Small-Cap stocks have out-performed Large-Cap stocks. However, this return advantage is not consistent, as Large-Cap stocks periodically enjoy long periods (typically 3-6 years) of superior return.
Burney’s SSR strategy exploits these cycles by adjusting portfolios to capture the opportunities available during both Large- and Small-Cap market phases.
The chart above depicts rolling 12-month return differentials between Value and Growth stocks since 1979. Returns above zero indicate periods where Value out-performs Growth; returns below indicate the reverse.
Over the long-term, Value stocks have delivered higher returns; however, cycles (typically 18 – 30 months long) periodically occur where the reverse is true.
Burney’s SSR strategy captures the opportunities available during both Value and Growth market phases.